Construction employment in May remained below the April level in 40 states and the District of Columbia, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said skyrocketing materials prices and excessive delays in receiving key construction supplies were holding back the industry’s recovery.
“Today’s numbers show that impacts from the pandemic on demand for projects and on materials costs and the supply chain are weighing down construction in most parts of the country,” said Ken Simonson, the association’s chief economist. “In the few states where industry employment has topped the pre-pandemic levels of February 2020, most gains are likely attributable more to demand for homebuilding and remodeling than to most categories of nonresidential building and infrastructure projects.”
From April to May, construction employment decreased in 40 states and D.C., increased in only eight states, and held steady in Maryland and Utah. The largest decline over the month occurred in New York, which lost 5,900 construction jobs or 1.6%, followed by Illinois (-5,600 jobs, -2.5%) and Pennsylvania (-3,300 jobs, -1.3%). The steepest percentage declines since April occurred in Vermont (-3.9%, -600 jobs), followed by Maine (-3.5%, -1,100 jobs) and Delaware (-3.0%, -300 jobs).
Florida added the most construction jobs between April and May (3,700 jobs, 0.6%), followed by Michigan (1,600 jobs, 0.9%) and Minnesota (1,200 jobs, 0.9%). Oklahoma had the largest percentage gain for the month (1.3%, 1,000 jobs), followed by Minnesota and Michigan.
Employment declined from the pre-pandemic peak month of February 2020 in 42 states and D.C. Texas lost the most construction jobs over the period (-49,100 jobs or -6.3%), followed by New York (-45,200 jobs, -11.1%) and California (-30,800 jobs, -3.4%). Wyoming recorded the largest percentage loss (-15.3%, -3,500 jobs), followed by Louisiana (-15.1%, -20,700 jobs) and New York.
Among the eight states that added construction jobs since February 2020, the largest pickup occurred in Utah (5,000 jobs, 4.4%), followed by Idaho (3,400 jobs, 6.2%) and South Dakota (1,200 jobs, 5.0%). The largest percentage gain was in Idaho, followed by South Dakota and Utah.
Association officials noted that cost increases and extended lead times for producing many construction materials are exacerbating a slow recovery for construction. They urged the Biden administration to accelerate its timetable for reaching agreement with allies on removing tariffs on steel and aluminum, and to initiate talks to end tariffs on Canadian lumber.
“Federal officials can help get more construction workers employed by removing tariffs on essential construction materials such as lumber, steel and aluminum,” said Stephen E. Sandherr, the association’s chief executive officer. “These tariffs are causing unnecessary harm to construction workers and firms, as well as to the administration’s goals of building more affordable housing and infrastructure.”
View state February 2020-May 2021 data, 15-month rankings, 1-month rankings.
Related Stories
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Codes and Standards | Jul 22, 2022
Hurricane-resistant construction may be greatly undervalued
New research led by an MIT graduate student at the school’s Concrete Sustainability Hub suggests that the value of buildings constructed to resist wind damage in hurricanes may be significantly underestimated.
Market Data | Jul 21, 2022
Architecture Billings Index continues to stabilize but remains healthy
Architecture firms reported increasing demand for design services in June, according to a new report today from The American Institute of Architects (AIA).
Market Data | Jul 21, 2022
Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023
Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA).
Building Team | Jul 18, 2022
Understanding the growing design-build market
FMI’s new analysis of the design-build market forecast for the next fives years shows that this delivery method will continue to grow, despite challenges from the COVID-19 pandemic.
Market Data | Jul 1, 2022
Nonresidential construction spending slightly dips in May, says ABC
National nonresidential construction spending was down by 0.6% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Jun 30, 2022
Yardi Matrix releases new national rent growth forecast
Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021.
Market Data | Jun 22, 2022
Architecture Billings Index slows but remains strong
Architecture firms reported increasing demand for design services in May, according to a new report today from The American Institute of Architects (AIA).
Building Team | Jun 17, 2022
Data analytics in design and construction: from confusion to clarity and the data-driven future
Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.
Market Data | Jun 15, 2022
ABC’s construction backlog rises in May; contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.
