Construction employment in January remained below pre-pandemic levels in all but eight states, according to an analysis by the Associated General Contractors of America of government employment data released today, while more firms have reduced headcount than have added to it in the past year, the association’s recent survey shows. Association officials said the jobs figures and survey results underscore the need for federal measures to stem future sector job losses.
“Despite improvement in many sectors of the economy, nonresidential contractors are coping with widespread project cancellations and postponements, soaring materials costs, and lengthening delivery times,” said Ken Simonson, the association’s chief economist. “That combination makes further job cuts likely in many states.”
The survey, which included responses from nearly 1500 firms, found 34% had reduced their employee count in the past year, compared to just 20% that had added employees. More than three-fourths of the firms had experienced project cancellations or deferrals, while only 21% reported winning new projects or add-ons to existing projects in the past two months.
Seasonally adjusted construction employment in January 2021 was lower than in February 2020—the last month before the pandemic forced many contractors to suspend work—in 42 states and was unchanged in the District of Columbia. Texas lost the most construction jobs over the period (-51,900 jobs or -6.6%), followed by California (-36,200 jobs, -4.0%), and New York (-26,000 jobs, -6.4%). Louisiana experienced the largest percentage loss (-14.0%, -19,200 jobs), followed by Wyoming (-9.6%, -2,200 jobs).
Only eight states added construction jobs from February 2020 to January 2021. Idaho added the most jobs (4,500 jobs, 8.2%), trailed by Utah (3,300 jobs, 2.9%), Alabama (6,100 jobs, 6.4%) and Arkansas (1,900 jobs, 3.6%,). Idaho added the highest percentage, followed by Arkansas and Alaska (3.0%, 500 jobs).
From December to January,19 states and D.C. lost construction jobs, 27 states added jobs, and there was no change in Alaska, North and South Dakota, and Wyoming. California had the largest loss of construction jobs for the month (-4,000 jobs or -0.5%), followed by South Carolina (-3,200 jobs, -3.0%) and Illinois (-3,200 jobs, -1.4%). South Carolina had the largest percentage decline, followed by Wisconsin (-2.4%, -3,000 jobs).
Florida added the most construction jobs over the month (3,500 jobs, 0.6%), followed by Texas (0.4%). Vermont had the largest monthly percentage gain (3.4%, 500 jobs), trailed by Idaho (3.3%, 1,900 jobs).
Association officials said demand for construction will continue to suffer amid pandemic-induced economic uncertainty and urged federal officials to enact measures to help stem additional job losses in the sector. These new measures should include new federal investments in infrastructure, ending tariffs on key construction materials, addressing supply chain backups and avoiding costly and unneeded new regulatory burdens.
“The pandemic is driving away projects, contributing to spiking materials prices and helping make delivery schedules unreliable,” said Stephen E. Sandherr, the association’s chief executive officer. “Contractors will not be able to build back better if they have to keep paying higher prices for materials that rarely arrive on time.”
View state February 2020-January 2021 data and rankings and December-January rankings. View AGC’s survey.
Related Stories
Industry Research | Oct 25, 2016
New HOK/CoreNet Global report explores impact of coworking on corporate real rstate
“Although coworking space makes up less than one percent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility,” says Kay Sargent, Director of WorkPlace at HOK.
Market Data | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.
Market Data | Sep 22, 2016
Architecture Billings Index slips, overall outlook remains positive
Business conditions are slumping in the Northeast.
Market Data | Sep 20, 2016
Backlog skyrockets for largest firms during second quarter, but falls to 8.5 months overall
While a handful of commercial construction segments continue to be associated with expanding volumes, for the most part, the average contractor is no longer getting busier, says ABC Chief Economist Anirban Basu.
