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
Market Data | Dec 5, 2018
ABC predicts construction sector will remain strong in 2019
Job growth, high backlog and healthy infrastructure investment all spell good news for the industry.
Market Data | Dec 4, 2018
Nonresidential spending rises modestly in October
Thirteen out of 16 subsectors are associated with year-over-year increases.
Market Data | Nov 20, 2018
Construction employment rises from October 2017 to October 2018 in 44 states and D.C.
Texas has biggest annual job increase while New Jersey continues losses; Iowa, Florida and California have largest one-month gains as Mississippi and Louisiana trail.
Market Data | Nov 15, 2018
Architecture firm billings continue to slow, but remain positive in October
Southern region reports decline in billings for the first time since June 2012.
Market Data | Nov 14, 2018
A new Joint Center report finds aging Americans less prepared to afford housing
The study foresees a significant segment of seniors struggling to buy or rent on their own or with other people.
Market Data | Nov 12, 2018
Leading hotel markets in the U.S. construction pipeline
Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs.
Market Data | Nov 6, 2018
Unflagging national office market enjoys economic tailwinds
Stable vacancy helped push asking rents 4% higher in third quarter.
Market Data | Nov 2, 2018
Nonresidential spending retains momentum in September, up 8.9% year over year
Total nonresidential spending stood at $767.1 billion on a seasonally adjusted, annualized rate in September.
Market Data | Oct 30, 2018
Construction projects planned and ongoing by world’s megacities valued at $4.2trn
The report states that Dubai tops the list with total project values amounting to US$374.2bn.
Market Data | Oct 26, 2018
Nonresidential fixed investment returns to earth in Q3
Despite the broader economic growth, fixed investment inched 0.3% lower in the third quarter.