Construction employment in June remained below the levels reached before the pre-pandemic peak in February 2020 in 39 states, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials noted that many construction firms are struggling to cope with supply chain challenges and rising materials prices, which is undermining demand for new projects and impacting firms’ ability to hire new workers.
“The construction industry is a long way from full recovery in most states, in spite of a hot homebuilding market in many areas,” said Ken Simonson, the association’s chief economist. “Soaring materials costs, long production times for key items, and delayed deliveries are causing owners to postpone projects.”
From February 2020—the month before the pandemic caused project shutdowns and cancellations—to last month, construction employment increased in only 11 states and was flat in the District of Columbia. New York shed the most construction jobs over the period (-54,300 jobs or -13.3%), followed by Texas (-54,100 jobs, -6.9%) and California (-36,500 jobs, -4.0%). Wyoming recorded the largest percentage loss (-15.3%, -3,500 jobs), followed by Louisiana (-15.1%, -20,700 jobs) and New York.
Of the states that added construction jobs since February 2020, Utah added the most (7,000 jobs, 6.1%), followed by Idaho (4,400 jobs, 8.0%), South Dakota (1,400 jobs, 5.9%) and Rhode Island (1,200 jobs, 5.9%). The largest percentage gain was in Idaho, followed by Utah, Rhode Island, and South Dakota.
From May to June construction employment decreased in 25 states, increased in 24 states and D.C., and held steady in Maine. The largest decline over the month occurred in New York, which lost 6,900 construction jobs or 1.9%, followed by Pennsylvania (-4,100 jobs, -1.6%) and Texas (-3,300 jobs, -1.3%). The steepest percentage declines since May occurred in Vermont (-3.5%, -500 jobs), followed by New York, Alabama (-1.9%, -1,700 jobs), and North Dakota (-1.9%, -500 jobs).
Georgia added the most construction jobs between May and June (5,700 jobs, 2.9%), followed by Kentucky (2,700 jobs, 3.4%) and Florida (2,500 jobs, 0.4%). Kentucky had the largest percentage gain for the month, followed by Alaska (3.0%, 500 jobs) and Georgia.
Association officials cautioned that construction employment is unlikely to grow in many parts of the country until many of the supply chain challenges impacting firms improve. They added that the President could help by removing tariffs on key construction materials. They added that ending the unemployment supplements would add to the pool of workers for manufacturers, shippers, and construction firms to hire.
“Easing tariffs will help, but what the construction supply chain needs are workers to manufacture the products, ship them to contractors and build the projects the economy demands,” said Stephen E. Sandherr, the association’s chief executive officer. “Unemployment supplements helped families survive the pandemic-related lock downs, but they are undermining the post-pandemic recovery.”
View state February 2020-June 2021 data, 16-month rankings, 1-month rankings, and map.
Related Stories
Market Data | Jun 3, 2016
JLL report: Retail renovation drives construction growth in 2016
Retail construction projects were up nearly 25% year-over-year, and the industrial and office construction sectors fared well, too. Economic uncertainty looms over everything, however.
Market Data | Jun 2, 2016
ABC: Nonresidential construction spending down in April
Lower building material prices, a sluggish U.S. economy, and hesitation among private developers all factor into the 2.1% drop.
Market Data | May 20, 2016
Report: Urban area population growth slows
Older Millennials are looking to buy homes and move away to more affordable suburbs and exurbs.
Market Data | May 17, 2016
Modest growth for AIA’s Architecture Billings Index in April
The American Institute of Architects reported the April ABI score was 50.6, down from the mark of 51.9 in the previous month. This score still reflects an increase in design services.
Market Data | Apr 29, 2016
ABC: Quarterly GDP growth slowest in two years
Bureau of Economic Analysis data indicates that the U.S. output is barely growing and that nonresidential investment is down.
Market Data | Apr 20, 2016
AIA: Architecture Billings Index ends first quarter on upswing
The multi-family residential sector fared the best. The Midwest was the only U.S. region that didn't see an increase in billings.
Building Technology | Apr 11, 2016
A nascent commercial wireless sensor market is poised to ascend in the next decade
Europe and Asia will propel that growth, according to a new report from Navigant.
Industry Research | Apr 7, 2016
CBRE provides latest insight into healthcare real estate investors’ strategies
Survey respondents are targeting smaller acquisitions, at a time when market cap rates are narrowing for different product types.
Market Data | Apr 4, 2016
ABC: Nonresidential spending slip in February no cause for alarm
Spending in the nonresidential sector totaled $690.3 billion on a seasonally adjusted, annualized basis in February. The figure is a step back but still significantly higher than one year ago.
Market Data | Mar 30, 2016
10 trends for commercial real estate: JLL report
The report looks at global threats and opportunities, and how CRE firms are managing their expectations for growth.
