Construction employment decreased from February 2020 to February 2021 in 236 of the nation’s metro areas, according to an analysis by the Associated General Contractors of America of government employment data released today, amid project cancellations, rising material prices and supply chain problems. Association officials said that the industry will struggle to add jobs in the future if a series of proposed new labor laws, including the PRO Act, were to be put into law by the current Congress and administration.
“Relatively few places have recovered from the pandemic-induced impacts on the construction industry,” said Ken Simonson, the association’s chief economist. “Project cancellations, spiking materials prices and significant supply chain challenges are making it hard for most firms to add new construction jobs compared to a year ago.”
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 12-month period (-37,600 jobs, -16%), followed by New York City (-26,700 jobs, -17%); Chicago-Naperville-Arlington Heights, Ill. (-12,900 jobs, -11%) and Midland, Texas (-11,600 jobs, -31%). Odessa, Texas had the largest percentage decline (-40%, -8,200 jobs), followed by Lake Charles, La. (-39%, -7,700 jobs); Midland; Longview, Texas (-23%, -3,400 jobs) and Laredo, Texas (-23%, -900 jobs).
Only 83 metro areas added construction jobs during the past 12 months, while construction employment was stagnant in 39 metro areas. Sacramento--Roseville--Arden-
Association officials cautioned that federal officials are considering a host of measures that will not only undermine proposed new infrastructure investments, but also make it harder for firms to add new employees. Foremost among those challenges are the PRO Act, which would unleash a new wave of labor instability. The measure would likely lead to a host of new strikes and jobsite disruptions that will make it hard for firms to add new employees.
“It will be hard for firms to add new employees if they have no idea whether the jobs they are working on will be shut down because of the wide range of labor actions encouraged by the PRO Act,” said Stephen E. Sandherr, the association’s chief executive officer. “New infrastructure investments will certainly help the industry, but our members won’t be able to build back better if the work is mired in labor uncertainty.”
View the metro employment 12-month data, rankings, top 10, multi-metro division, and map.
Related Stories
Hotel Facilities | Jul 27, 2023
U.S. hotel construction pipeline remains steady with 5,572 projects in the works
The hotel construction pipeline grew incrementally in Q2 2023 as developers and franchise companies push through short-term challenges while envisioning long-term prospects, according to Lodging Econometrics.
Hotel Facilities | Jul 26, 2023
Hospitality building construction costs for 2023
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Market Data | Jul 24, 2023
Leading economists call for 2% increase in building construction spending in 2024
Following a 19.7% surge in spending for commercial, institutional, and industrial buildings in 2023, leading construction industry economists expect spending growth to come back to earth in 2024, according to the July 2023 AIA Consensus Construction Forecast Panel.
Contractors | Jul 13, 2023
Construction input prices remain unchanged in June, inflation slowing
Construction input prices remained unchanged in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices were also unchanged for the month.
Contractors | Jul 11, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of June 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in June 2023, according to an ABC member survey conducted June 20 to July 5. The reading is unchanged from June 2022.
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
