Three-fourths of all metro areas added construction jobs between July 2020 and last month, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials noted that while many metro areas have added jobs since last summer, construction employment still lags pre-pandemic levels in many areas as the industry faces a host of challenges.
“The rapid spread of the delta variant of coronavirus, along with soaring materials costs and multiple supply-chain difficulties, appears to be causing some project owners to delay starting construction,” said Ken Simonson, the association’s chief economist. “However, the virus flare-up threatens further job gains, particularly because construction workers have a lower vaccination rate and thus a higher risk of becoming ill than other occupations.”
Construction employment increased in 268 out of 358 metro areas over the last 12 months. Seattle-Bellevue-Everett, Wash. added the most construction jobs (10,200 jobs, 10%), followed by Sacramento--Roseville--Arden-
Construction employment declined from a year earlier in 54 metros and held steady in 36. Houston-The Woodlands-Sugar Land, Texas lost the most jobs: 7,000 or 3%, followed by New York City (-6,300 jobs, -4%); Miami-Miami Beach-Kendall, Fla. (-3,500 jobs, -7%); Nassau County-Suffolk County, N.Y. (-2,400 jobs, -3%) and Calvert-Charles-Prince George’s, Md. (-2,400 jobs, -7%). The largest percentage declines, 11%, were in Atlantic City-Hammonton, N.J. (-600 jobs) and Evansville, Ind.-Ky. (-1,100 jobs), followed by 9% decreases in Tuscaloosa, Ala. (-600 jobs) and Victoria, Texas (-300 jobs).
Association officials urged federal officials to take steps to address supply-chain woes and boost demand for many types of construction services. They continued to call for the removal of tariffs on a host of critical construction materials, including steel and aluminum. And they urged the House of Representatives to quickly pass bipartisan infrastructure legislation that would give a needed boost to construction demand at a time when many private sector owners are rethinking projects amid rising prices and the spiking coronavirus cases.
“Washington officials have the ability to help offset soaring materials prices and boost flagging demand for commercial construction,” said Stephen E. Sandherr, the association’s chief executive officer. “The president should put an immediate end to tariffs that are needlessly inflating the cost of key materials and members of the House should rapidly approve the bipartisan infrastructure bill.”
Related Stories
Market Data | Aug 7, 2018
New supply's impact illustrated in Yardi Matrix national self storage report for July
The metro with the most units under construction and planned as a percent of existing inventory in mid-July was Nashville, Tenn.
Market Data | Aug 3, 2018
U.S. multifamily rents reach new heights in July
Favorable economic conditions produce a sunny summer for the apartment sector.
Market Data | Aug 2, 2018
Nonresidential construction spending dips in June
“The hope is that June’s construction spending setback is merely a statistical aberration,” said ABC Chief Economist Anirban Basu.
Market Data | Aug 1, 2018
U.S. hotel construction pipeline continues moderate growth year-over-year
The hotel construction pipeline has been growing moderately and incrementally each quarter.
Market Data | Jul 30, 2018
Nonresidential fixed investment surges in second quarter
Nonresidential fixed investment represented an especially important element of second quarter strength in the advance estimate.
Market Data | Jul 11, 2018
Construction material prices increase steadily in June
June represents the latest month associated with rapidly rising construction input prices.
Market Data | Jun 26, 2018
Yardi Matrix examines potential regional multifamily supply overload
Outsize development activity in some major metros could increase vacancy rates and stagnate rent growth.
Market Data | Jun 22, 2018
Multifamily market remains healthy – Can it be sustained?
New report says strong economic fundamentals outweigh headwinds.
Market Data | Jun 21, 2018
Architecture firm billings strengthen in May
Architecture Billings Index enters eighth straight month of solid growth.
Market Data | Jun 20, 2018
7% year-over-year growth in the global construction pipeline
There are 5,952 projects/1,115,288 rooms under construction, up 8% by projects YOY.