Construction employment decreased from January 2020 to January 2021 in nearly two-thirds of the nation’s metro areas, according to an analysis by the Associated General Contractors of America of government employment data released today, as project cancellations and a lack of new orders have forced firms to reduce their headcount, the association’s latest contractor survey shows. Association officials said more layoffs are likely for the industry amid spiking materials prices and uncertain demand for new projects.
“More contractors are telling us they are cutting headcount than adding workers, which is consistent with the new data showing the industry is shrinking in many parts of the country,” said Ken Simonson, the association’s chief economist. “More than three-fourth of the firms said projects had been postponed or canceled, while only one out of five reported winning new work or an add-on to an existing project in the previous two months as a result of the pandemic. That imbalance makes further job losses likely in many metros.”
Construction employment fell in 225, or 63%, of 358 metro areas between January 2020 and January 2021. Industry employment was stagnant in 41 additional metro areas, while only 92 metro areas—26%—added construction jobs.
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 12-month period (-32,900 jobs, -14%), followed by New York City (-23,000 jobs, -15%); Midland, Texas (-11,100 jobs, -29%); and Chicago-Naperville-Arlington Heights, Ill. (-10,400 jobs, -9%). Lake Charles, La. had the largest percentage decline (-40%, -8,100 jobs), followed by Odessa, Texas (-37%, -7,600 jobs); Midland; and Laredo, Texas (-27%, -1,100 jobs).
Sacramento--Roseville--Arden-
Association officials are urging Congress and the Biden administration to work together to address rising materials prices, supply chain backups and invest in infrastructure. They are asking the administration to end tariffs on key construction materials, including steel and lumber, work with shippers to get deliveries back on track and pass the significant new infrastructure investments the president has promised.
“The construction industry won’t be able to fully recover and start adding jobs in significant numbers as long as materials prices continue to spike, deliveries remain unreliable and demand remains uncertain,” said Stephen E. Sandherr, the association’s chief executive officer. “Federal officials can’t fix every problem, but they can help by removing tariffs, helping hard-hit shippers and boosting investments in the nation’s infrastructure.”
View the metro employment 12-month data, rankings, top 10, multi-division metros. View AGC’s survey.
Related Stories
Contractors | Oct 19, 2023
Crane Index indicates slowing private-sector construction
Private-sector construction in major North American cities is slowing, according to the latest RLB Crane Index. The number of tower cranes in use declined 10% since the first quarter of 2023. The index, compiled by consulting firm Rider Levett Bucknall (RLB), found that only two of 14 cities—Boston and Toronto—saw increased crane counts.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, 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 $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Contractors | Sep 12, 2023
The average U.S. contractor has 9.2 months worth of construction work in the pipeline, as of August 2023
Associated Builders and Contractors' Construction Backlog Indicator declined to 9.2 months in August, down 0.1 month, according to an ABC member survey conducted from Aug. 21 to Sept. 6. The reading is 0.5 months above the August 2022 level.
Contractors | Sep 11, 2023
Construction industry skills shortage is contributing to project delays
Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.
Market Data | Sep 6, 2023
Far slower construction activity forecast in JLL’s Midyear update
The good news is that market data indicate total construction costs are leveling off.
Giants 400 | Sep 5, 2023
Top 80 Construction Management Firms for 2023
Alfa Tech, CBRE Group, Skyline Construction, Hill International, and JLL top the rankings of the nation's largest construction management (as agent) and program/project management firms for nonresidential buildings and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Sep 5, 2023
Top 150 Contractors for 2023
Turner Construction, STO Building Group, DPR Construction, Whiting-Turner Contracting Co., and Clark Group head the ranking of the nation's largest general contractors, CM at risk firms, and design-builders for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2023 Giants 400 Report.