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

COVID-19 cuts nonresidential construction employment in March

Market Data

COVID-19 cuts nonresidential construction employment in March

The construction unemployment rate was 6.9% in March, up 1.7 percentage points from the same time one year ago.


By ABC | April 3, 2020

Construction industry employment declined by 29,000 in March, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. Nonresidential construction employment declined by 24,600 in March.

All three nonresidential segments registered job losses, with the largest decrease experienced in nonresidential building (-10,700) followed closely by heavy and civil engineering (-10,200). Nonresidential specialty trade lost 3,700 jobs on net.

The construction unemployment rate was 6.9% in March, up 1.7 percentage points from the same time one year ago. Unemployment across all industries rose from 3.5% in February to 4.4% last month, a direct result of the global pandemic.

“So ends the lengthiest expansion in American economic history,” said ABC Chief Economist Anirban Basu. “The expansion was associated with dramatic asset price increases, multi-decade lows in unemployment, persistently low costs of capital and a thriving U.S. nonresidential construction sector. While the March jobs report is horrific, ending a 113-month streak of employment gains, it is clear that employment reports in future months are likely to be even worse.

“What remains unclear is the extent to which estimated construction employment declines are due to mandated suspension of projects in Massachusetts, Pennsylvania, California and elsewhere, and how much of this is due to the emergence of recessionary forces,” said Basu. “Generally, nonresidential construction is one of the last segments of the economy to enter recession as contractors continue to work down their collective backlog, which stood at 8.9 months in ABC’s Construction Backlog Indicator. The need for social distancing renders that statistic less pertinent, meaning that nonresidential construction is susceptible to large-scale job losses immediately.

“While the recently passed stimulus package is massive and helps support the payments side of the economy, economic recovery will remain elusive until the COVID-19-engendered crisis is behind us,” said Basu. “While that is obvious, many people are still looking to compare the current crisis to other episodes in American history, including the Great Recession. As a practical matter, this period defies comparison, and must be understood on its own. Based on what is known, the downturn will be vicious. The good news is that this crisis may finally induce policymakers to fashion and implement a long-awaited infrastructure stimulus package.”

 

 

 

Related Stories

Contractors | Apr 19, 2023

Rising labor, material prices cost subcontractors $97 billion in unplanned expenses

Subcontractors continue to bear the brunt of rising input costs for materials and labor, according to a survey of nearly 900 commercial construction professionals. 

Data Centers | Apr 14, 2023

JLL's data center outlook: Cloud computing, AI driving exponential growth for data center industry

According to JLL’s new Global Data Center Outlook, the mass adoption of cloud computing and artificial intelligence (AI) is driving exponential growth for the data center industry, with hyperscale and edge computing leading investor demand.

Healthcare Facilities | Apr 13, 2023

Healthcare construction costs for 2023

Data from Gordian breaks down the average cost per square foot for a three-story hospital across 10 U.S. cities.

Higher Education | Apr 13, 2023

Higher education construction costs for 2023

Fresh data from Gordian breaks down the average cost per square foot for a two-story college classroom building across 10 U.S. cities.

Market Data | Apr 13, 2023

Construction input prices down year-over-year for first time since August 2020

Construction input prices increased 0.2% in March, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices rose 0.4% for the month.

Market Data | Apr 11, 2023

Construction crane count reaches all-time high in Q1 2023

Toronto, Seattle, Los Angeles, and Denver top the list of U.S/Canadian cities with the greatest number of fixed cranes on construction sites, according to Rider Levett Bucknall's RLB Crane Index for North America for Q1 2023.

Contractors | Apr 11, 2023

The average U.S. contractor has 8.7 months worth of construction work in the pipeline, as of March 2023

Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.7 months in March, according to an ABC member survey conducted March 20 to April 3. The reading is 0.4 months higher than in March 2022.

Market Data | Apr 6, 2023

JLL’s 2023 Construction Outlook foresees growth tempered by cost increases

The easing of supply chain snags for some product categories, and the dispensing with global COVID measures, have returned the North American construction sector to a sense of normal. However, that return is proving to be complicated, with the construction industry remaining exceptionally busy at a time when labor and materials cost inflation continues to put pricing pressure on projects, leading to caution in anticipation of a possible downturn. That’s the prognosis of JLL’s just-released 2023 U.S. and Canada Construction Outlook.

Market Data | Apr 4, 2023

Nonresidential construction spending up 0.4% in February 2023

National nonresidential construction spending increased 0.4% in February, according to an Associated Builders and Contractors analysis of data published by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $982.2 billion for the month, up 16.8% from the previous year. 

Multifamily Housing | Mar 24, 2023

Average size of new apartments dropped sharply in 2022

The average size of new apartments in 2022 dropped sharply in 2022, as tracked by RentCafe. Across the U.S., the average new apartment size was 887 sf, down 30 sf from 2021, which was the largest year-over-year decrease.

boombox1 - default
boombox2 -
native1 -

More In Category


Construction Costs

New download: BD+C's April 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