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
Industry Research | Aug 11, 2017
NCARB releases latest data on architectural education, licensure, and diversity
On average, becoming an architect takes 12.5 years—from the time a student enrolls in school to the moment they receive a license.
Market Data | Aug 4, 2017
U.S. grand total construction starts growth projection revised slightly downward
ConstructConnect’s quarterly report shows courthouses and sports stadiums to end 2017 with a flourish.
Market Data | Aug 2, 2017
Nonresidential Construction Spending falls in June, driven by public sector
June’s weak construction spending report can be largely attributed to the public sector.
Market Data | Jul 31, 2017
U.S. economic growth accelerates in second quarter; Nonresidential fixed investment maintains momentum
Nonresidential fixed investment, a category of GDP embodying nonresidential construction activity, expanded at a 5.2% seasonally adjusted annual rate.
Multifamily Housing | Jul 27, 2017
Apartment market index: Business conditions soften, but still solid
Despite some softness at the high end of the apartment market, demand for apartments will continue to be substantial for years to come, according to the National Multifamily Housing Council.
Market Data | Jul 25, 2017
What's your employer value proposition?
Hiring and retaining talent is one of the top challenges faced by most professional services firms.
Market Data | Jul 25, 2017
Moderating economic growth triggers construction forecast downgrade for 2017 and 2018
Prospects for the construction industry have weakened with developments over the first half of the year.
Industry Research | Jul 6, 2017
The four types of strategic real estate amenities
From swimming pools to pirate ships, amenities (even crazy ones) aren’t just perks, but assets to enhance performance.
Market Data | Jun 29, 2017
Silicon Valley, Long Island among the priciest places for office fitouts
Coming out on top as the most expensive market to build out an office is Silicon Valley, Calif., with an out-of-pocket cost of $199.22.
Market Data | Jun 26, 2017
Construction disputes were slightly less contentious last year
But poorly written and administered contracts are still problems, says latest Arcadis report.
