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 | Sep 10, 2019
Apartment buildings and their residents contribute $3.4 trillion to the national economy
New data show how different aspects of the apartment industry positively impact national, state and local economies.
Market Data | Sep 3, 2019
Nonresidential construction spending slips in July 2019, but still surpasses $776 billion
Construction spending declined 0.3% in July, totaling $776 billion on a seasonally adjusted annualized basis.
Industry Research | Aug 29, 2019
Construction firms expect labor shortages to worsen over the next year
A new AGC-Autodesk survey finds more companies turning to technology to support their jobsites.
Market Data | Aug 21, 2019
Architecture Billings Index continues its streak of soft readings
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Aug 19, 2019
Multifamily market sustains positive cycle
Year-over-year growth tops 3% for 13th month. Will the economy stifle momentum?
Market Data | Aug 16, 2019
Students say unclean restrooms impact their perception of the school
The findings are part of Bradley Corporation’s Healthy Hand Washing Survey.
Market Data | Aug 12, 2019
Mid-year economic outlook for nonresidential construction: Expansion continues, but vulnerabilities pile up
Emerging weakness in business investment has been hinting at softening outlays.
Market Data | Aug 7, 2019
National office vacancy holds steady at 9.7% in slowing but disciplined market
Average asking rental rate posts 4.2% annual growth.
Market Data | Aug 1, 2019
Nonresidential construction spending slows in June, remains elevated
Among the 16 nonresidential construction spending categories tracked by the Census Bureau, seven experienced increases in monthly spending.
Market Data | Jul 31, 2019
For the second quarter of 2019, the U.S. hotel construction pipeline continued its year-over-year growth spurt
The growth spurt continued even as business investment declined for the first time since 2016.