flexiblefullpage -
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

Construction employment in May trails pre-covid levels in 91 metro areas

Market Data

Construction employment in May trails pre-covid levels in 91 metro areas

Firms struggle to cope with materials, labor challenges.


By AGC | June 30, 2021

Construction employment declined in 91 metro areas and was stagnant in another 24 between February 2020, the last month before the pandemic, and May 2021, according to an analysis by the Associated General Contractors of America of government employment data released today. They said the high number of metro areas losing construction jobs during that time frame reflected the impacts of early pandemic shutdowns and more recent challenges procuring construction materials and finding qualified workers to hire.

“The devastating job losses of early 2020 and more recent materials and labor challenges since then have kept industry employment stagnant or lower this May than in February 2020 in nearly one-third of metros,” said Ken Simonson, the association’s chief economist. “Extreme lead times for producing and delivering materials, along with record prices for many items, has led to project delays and cancellations that have chilled hiring.”

Of the 91 metro areas with lower construction employment in May 2021 than in February 2020, Houston-The Woodlands-Sugar Land, Texas lost the most jobs: 30,500 or 13%. Major losses also occurred in New York City (-21,200 jobs, -13%); Midland, Texas (-9,600 jobs, -25%) and Odessa, Texas (-8,300 jobs, -40%). Odessa had the largest percentage decline, followed by Lake Charles, La. (-36%, -7,200 jobs); Midland; Laredo, Texas (-23%, -900 jobs) and Longview, Texas (-22%, -3,300 jobs).

Construction employment increased in 243 metro areas compared to the February 2020 level—far fewer than the 320 metros that typically add construction jobs between February and May, Simonson noted. Minneapolis-St. Paul-Bloomington, Minn.-Wis. added the most construction jobs over 15 months (11,100 jobs, 14%), followed by Indianapolis-Carmel-Anderson, Ind. (10,900 jobs, 21%); Chicago-Naperville-Arlington Heights, Ill. (10,300 jobs, 9%); Seattle-Bellevue-Everett, Wash. (6,900 jobs, 7%); and Pittsburgh, Pa. (6,900 jobs, 12%). Fargo, N.D.-Minn. had the highest percentage increase (45%, 3,300 jobs), followed by Sierra Vista-Douglas, Ariz. (44%, 1,100 jobs); and Bay City, Mich. (36%, 400 jobs).

Association officials said that many construction firms report challenges with rising materials prices, supply chain problems that are leading to delivery delays for key components and challenges finding qualified labor to hire. They urged the Biden administration and Congress to work together to remove tariffs on key construction materials, ease supply chain shortages and boost investments in career and technical education. They added that the association posted an updated Construction Inflation Alert to inform owners and officials about the worsening problems with rising materials costs, shipping delays and labor shortages.

“It is hard for the construction industry to grow while firms struggle to pay for and source key materials and have a hard time finding qualified workers to hire,” said Stephen E. Sandherr, the association’s chief executive officer. “Federal officials can help the industry and boost the economy by removing tariffs, easing supply chain backups and investing in workforce development.”

View the metro employment datarankingstop 10multi-division metros, and map. View the Alert.

Related Stories

Market Data | Nov 14, 2019

Construction input prices unchanged in October

Nonresidential construction input prices fell 0.1% for the month and are down 2.0% compared to the same time last year.

Multifamily Housing | Nov 7, 2019

Multifamily construction market remains strong heading into 2020

Fewer than one in 10 AEC firms doing multifamily work reported a decrease in proposal activity in Q3 2019, according to a PSMJ report.

Market Data | Nov 5, 2019

Construction and real estate industry deals in September 2019 total $21.7bn globally

In terms of number of deals, the sector saw a drop of 4.4% over the last 12-month average.

Market Data | Nov 4, 2019

Nonresidential construction spending rebounds slightly in September

Private nonresidential spending fell 0.3% on a monthly basis and is down 5.7% compared to the same time last year.

Market Data | Nov 1, 2019

GDP growth expands despite reduction in nonresident investment

The annual rate for nonresidential fixed investment in structures declined 15.3% in the third quarter.

Market Data | Oct 24, 2019

Architecture Billings Index downturn moderates as challenging conditions continue

The Architecture Billings Index (ABI) score in September is 49.7.

Market Data | Oct 23, 2019

ABC’s Construction Backlog Indicator rebounds in August

The primary issue for most contractors is not a lack of demand, but an ongoing and worsening shortage of skilled workers available to meet contractual requirements.

Multifamily Housing | Oct 16, 2019

A new study wonders how many retiring adults will be able to afford housing

Harvard’s Joint Center for Housing Studies focuses on growing income disparities among people 50 or older.

Market Data | Oct 9, 2019

Two ULI reports foresee a solid real estate market through 2021

Market watchers, though, caution about a “surfeit” of investment creating a bubble.

Market Data | Oct 4, 2019

Global construction output growth will decline to 2.7% in 2019

It will be the slowest pace of growth in a decade, according to GlobalData.

boombox1 - default
boombox2 -
native1 -

More In Category

Construction Costs

New download: BD+C's May 2024 Market Intelligence Report

Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021