Construction employment decreased from February 2020 – the last month prior to the pandemic – to April 2021 in 107, or 30%, of the nation’s metro areas, and was stagnant in another 34, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that construction employment in many parts of the country was being undermined by pandemic-induced project delays, materials price spikes and shortages, and difficulties finding labor.
“It is disturbing to see that nearly one-third of the nation’s metro areas had lower construction employment totals in the mild weather and strongly rebounding economy of April 2021 than in the winter of 2020,” said Ken Simonson, the association’s chief economist. “Ever-growing supply-chain bottlenecks and record prices for numerous construction materials threaten to further chill demand for job gains in many metros.”
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 14-month period (-29,300 jobs, -12%), followed by New York City (-22,300 jobs, -14%); Midland, Texas (-9,800 jobs, -26%); Odessa, Texas (-8,000 jobs, -39%); and Lake Charles, La. (7,200 jobs, -36%). Odessa had the largest percentage decline, followed by Lake Charles; Midland; Laredo, Texas (-23%, -7,200 jobs) and Longview, Texas (-23%, -3,400 jobs).
Construction employment was stagnant in 34 additional metro areas, while 217 metro areas—61%—added construction jobs over the pre-pandemic (February 2020) level. Indianapolis-Carmel-Anderson, Ind. added the most construction jobs over 14 months (7,900 jobs, 15%), followed by Chicago-Naperville-Arlington Heights, Ill. (6,300 jobs, 5%); Seattle-Bellevue-Everett, Wash. (6,200 jobs, 6%); Minneapolis-St. Paul-Bloomington, Minn.-Wis. (5,900 jobs, 8%); and Sacramento--Roseville--Arden-
Sierra Vista-Douglas, Ariz. had the highest percentage increase (44%, 1,100 jobs), followed by Fargo, N.D.-Minn. (34%, 2,500 jobs); Lawrence-Methuen Town Salem, Mass-N.H. (29%, 1,000 jobs); Bay City, Mich. (27%, 300 jobs) and Taunton-Middleborough-Norton, Mass. (22%, 700 jobs).
Association officials called on the Biden administration to take steps to address rising materials prices and growing labor shortages. These steps include removing tariffs on key construction materials like steel, lumber and aluminum. And they include ending unemployment insurance supplements that are providing incentives for qualified workers to stay off payrolls for now.
“Washington has put in place a number of artificial barriers that are holding back the construction industry’s recovery,” said Stephen E. Sandherr, the association’s chief executive officer. “Washington’s tariffs are making materials more expensive while its unemployment supplements are making workers more hesitant to return to payrolls.”
View the metro employment 14-month data, rankings, top 10, multi-division metros, and map.
Related Stories
Market Data | May 15, 2020
Nonresidential construction employment sees record loss in April
The construction unemployment rate was 16.6% in April, up 11.9 percentage points from the same time last year.
Market Data | May 14, 2020
5 must reads for the AEC industry today: May 14, 2020
The good news about rent might not be so good and some hotel developers consider whether to abandon projects.
Market Data | May 13, 2020
House democrats' coronavirus measure provides some relief for contractors, but lacks other steps needed to help construction
Construction official says new highway funding, employee retention credits and pension relief will help, but lack of safe harbor measure, Eextension of unemployment bonus will undermine recovery.
Market Data | May 13, 2020
5 must reads for the AEC industry today: May 13, 2020
How to design resilient libraries in a post-covid world and vacation real-estate markets are 'toast.'
Market Data | May 12, 2020
ABC’s Construction Backlog Indicator falls in April; Contractor Confidence rebounds from historic lows
Nonresidential construction backlog is down 0.4 months compared to the March 2020 ABC survey and 1.7 months from April 2019.
Market Data | May 12, 2020
6 must reads for the AEC industry today: May 12, 2020
A 13-point plan to reduce coronavirus deaths in nursing homes and Bjarke Ingels discusses building on Mars.
Market Data | May 11, 2020
Interest in eSports is booming amid COVID-19
The industry has proved largely immune to the COVID-19 pandemic due to its prompt transition into online formats and sudden spike in interest from traditional sports organizations.
Market Data | May 11, 2020
6 must reads for the AEC industry today: May 11, 2020
Nashville residential tower will rise 416 feet and the construction industry loses 975,000 jobs.
Market Data | May 8, 2020
Construction industry loses 975,000 jobs in April as new association survey shows deteriorating demand for construction projects
Association partner Procore also releases near real-time construction data measuring impacts of coronavirus as association calls for new measures.
Market Data | May 8, 2020
7 must reads for the AEC industry today: May 8, 2020
The death of the office and Colorado's first multifamily project to receive WELL Precertification.