Only 34% of the nation’s metro areas—just over one-third—added construction jobs from November 2019 to November 2020, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials said large numbers of contractors are having to lay off workers once they complete projects begun before the pandemic because private owners and public agencies are hesitant to commit to new construction.
“Canceled and postponed projects appear to be more common than new starts for far too many contractors,” said Ken Simonson, the association’s chief economist. “Our association’s 2021 Construction Hiring and Business Outlook Survey found three times more contractors have experienced postponements and cancellations than new or expanded projects.”
Construction employment fell in 203, or 57%, of 358 metro areas between November 2019 and November 2020. Construction employment was stagnant in 33 additional metro areas, while only 122 metro areas—34%—added construction jobs during the past year.
Houston-The Woodlands-Sugar Land, Texas lost the most construction jobs over that span (-22,500 jobs, -9%), followed by New York City (-16,700 jobs, -11%); Midland, Texas (-9,800 jobs, -25%); Montgomery-Bucks-Chester counties, Pa. (-8,800 jobs, -16%); and Oakland-Hayward-Berkeley, Calif. (-8,400 jobs, -11%). Brockton-Bridgewater-Easton, Mass. had the largest percentage decline (-40%, -2,200 jobs), followed by Altoona, Pa. (-35%, -1,100 jobs); Bloomsburg-Berwick, Pa. (-31%, -400 jobs); Johnstown, Pa. (-31%, -800 jobs); and East Stroudsburg, Pa. (-30%, -600 jobs).
Phoenix-Mesa-Scottsdale, Ariz. added the most construction jobs over the year (4,700 jobs, 3%), followed by Baltimore-Columbia-Towson, Md. (4,500 jobs, 5%); Boise, Idaho (4,300 jobs, 16%); Dallas-Plano-Irving, Texas (3,700 jobs, 2%); and Seattle-Bellevue-Everett, Wash. (3,600 jobs, 3%). Walla Walla, Wash. had the highest percentage increase (17%, 200 jobs), followed by Boise; Oshkosh-Neenah, Wisc. (16%, 900 jobs); and Springfield, Mo. (16%, 1,500 jobs).
Association officials said many metro areas were likely to lose more construction jobs amid declining demand and continued project cancellations and delays. They added that a clearer picture of what is in store for the industry will emerge on Thursday, January 7, when the association releases the 2021 Construction Hiring and Business Outlook it prepared with Sage.
“Construction employment is likely to fall further in many parts of the country as the coronavirus continues to weigh on demand for nonresidential projects,” said Stephen E. Sandherr, the association’s chief executive officer. “Unless market conditions change rapidly, this year is likely to prove very challenging for many construction employers.”
View the metro employment 12-month data, rankings, top 10, new highs and lows, map.
Related Stories
Market Data | Aug 3, 2020
6 must reads for the AEC industry today: August 3, 2020
The future is a number game for retail and restaurants and 5 reasons universities are renovating student housing.
Market Data | Jul 31, 2020
5 must reads for the AEC industry today: July 31, 2020
Vegas's newest resort and casino is packed with contactless technology and Mariott, Hilton, and IHG dominate the U.S. hotel construction pipeline.
Market Data | Jul 30, 2020
Marriott, Hilton, and IHG continue to dominate the U.S. hotel construction pipeline at Q2’20 close
Hilton’s Home2 Suites and IHG’s Holiday Inn Express continue to be the most prominent brands in the U.S. pipeline.
Market Data | Jul 30, 2020
7 must reads for the AEC industry today: July 30, 2020
Millennium Tower finally has a fix and construction costs decrease for the first time in 10 years.
Market Data | Jul 29, 2020
62% of metros shed construction jobs from June 2019 to June 2020 as Association calls for new infrastructure funding, other relief steps
New York City and Brockton-Bridgewater-Easton, Mass. have worst 12-month losses, while Austin and Walla Walla, Wash. top job gainers.
Market Data | Jul 29, 2020
6 must reads for the AEC industry today: July 29, 2020
The world's first net-zero airport and California utility adopts climate emergency declaration.
Market Data | Jul 28, 2020
For the fourth consecutive quarter, Los Angeles leads the U.S. hotel construction pipeline at the close of Q2’ 20
New York City continues to have the greatest number of projects under construction, with 106 projects/18,354 rooms.
Market Data | Jul 28, 2020
6 must reads for the AEC industry today: July 28, 2020
St. Petersburg Pier reconstruction completes and post-pandemic workplace design will not be the same for all.
Market Data | Jul 28, 2020
Senate Republicans' coronavirus relief measure includes provisions that will help hard-hit construction firms recover
The HEALS Act includes essential liability, workforce, financial & unemployment reforms, but association will work to get needed infrastructure investments included in final relief measure.
Market Data | Jul 27, 2020
6 must reads for the AEC industry today: July 27, 2020
Customized labs give universities a recruiting edge and the U.S. construction pipeline remains robust through the first half of 2020.
