Construction employment decreased in 225, or 62%, out of 358 metro areas between June 2019 and last month despite widespread increases from May to June, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials urged government officials to enact liability reform, boost infrastructure investments and extend tax credits to help the industry recover and rebuild.
“It’s troubling to see construction employment lagging year-ago levels in most locations, in spite of a strong rebound in May and June,” said Ken Simonson, the association’s chief economist. “Those gains were not enough to erase the huge losses in March and April. Many indicators since the employment data were collected in mid-June suggest construction employment will soon decline, or stagnate at best, in much of the country.”
Simonson noted that construction employment was stagnant in 39 metro areas and increased in only 94 areas (26%) over the past 12 months. Eighteen metros had all-time lows for June construction employment, while 28 areas had record highs for June, in data going back to 1990 for most areas.
New York City lost the most construction jobs over 12 months (-38,200 jobs, -24%) despite having the largest gain from May to June. Brockton-Bridgewater-Easton, Mass. had the largest percentage decline: -37% (-2,200 jobs). Austin-Round Rock, Texas added the most construction jobs from June 2019 to June 2020: 4,100 jobs (6%). Walla Walla, Wash. had the highest percentage increase: 27% (300 jobs).
From May to June—a month when construction employment typically increases in most metro areas, 291 metros added construction employees; 42 areas had a decrease; and employment was unchanged in 25 areas. New York City added the most construction jobs between May and June: 22,100 or 22%. The largest percentage increase occurred in Monroe, Mich.: 31% (500 jobs). New Orleans-Metairie La. lost the most jobs during the month: -1,500 jobs (-6%). The largest percentage loss was in Yuba City, Calif.: -10% (-300 jobs).
Association officials noted that Senate Republican leaders released a new coronavirus recovery measure earlier this week that includes provisions that can help construction firms rebuild their payrolls. These include liability reforms so construction firms that are protecting workers from the coronavirus will not be subject to needless litigation. The proposal also includes improvement to the Paycheck Protection Program and an expansion of the Employee Retention Tax Credit the association supports.
“While the measure also addresses unemployment insurance and workforce development, it fails to include the kind of infrastructure funding needed to rebuild our economy” said Stephen E. Sandherr, the association’s chief executive officer. “That new funding is needed to address state transportation funding shortfalls, fix aging public facilities and help retrofit structures to protect students and others from the coronavirus.”
View the metro employment 1-month data, rankings, top 10, map and 12-month data, rankings, top 10, and map.
Related Stories
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.
Market Data | Mar 23, 2016
AIA: Modest expansion for Architecture Billings Index
Business conditions softening most in Midwest in recent months.
Retail Centers | Mar 16, 2016
Food and technology will help tomorrow’s malls survive, says CallisonRTKL
CallisonRTKL foresees future retail centers as hubs with live/work/play components.
Market Data | Mar 6, 2016
Real estate execs measure success by how well they manage ‘talent,’ costs, and growth
A new CBRE survey finds more companies leaning toward “smarter” workspaces.
Market Data | Mar 1, 2016
ABC: Nonresidential spending regains momentum in January
Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.
Market Data | Mar 1, 2016
Leopardo releases 2016 Construction Economics Report
This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007.
Market Data | Feb 26, 2016
JLL upbeat about construction through 2016
Its latest report cautions about ongoing cost increases related to finding skilled laborers.