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
K-12 Schools | Jul 15, 2019
Summer assignments: 2019 K-12 school construction costs
Using RSMeans data from Gordian, here are the most recent costs per square foot for K-12 school buildings in 10 cities across the U.S.
Market Data | Jul 12, 2019
Construction input prices plummet in June
This is the first time in nearly three years that input prices have fallen on a year-over-year basis.
Market Data | Jul 1, 2019
Nonresidential construction spending slips modestly in May
Among the 16 nonresidential construction spending categories tracked by the Census Bureau, five experienced increases in monthly spending.
Market Data | Jul 1, 2019
Almost 60% of the U.S. construction project pipeline value is concentrated in 10 major states
With a total of 1,302 projects worth $524.6 billion, California has both the largest number and value of projects in the U.S. construction project pipeline.
Market Data | Jun 21, 2019
Architecture billings remain flat
AIA’s Architecture Billings Index (ABI) score for May showed a small increase in design services at 50.2.
Market Data | Jun 19, 2019
Number of U.S. architects continues to rise
New data from NCARB reveals that the number of architects continues to increase.
Market Data | Jun 12, 2019
Construction input prices see slight increase in May
Among the 11 subcategories, six saw prices fall last month, with the largest decreases in natural gas.
Market Data | Jun 3, 2019
Nonresidential construction spending up 6.4% year over year in April
Among the 16 sectors tracked by the U.S. Census Bureau, nine experienced an increase in monthly spending, led by water supply and highway and street.
Market Data | Jun 3, 2019
4.1% annual growth in office asking rents above five-year compound annual growth rate
Market has experienced no change in office vacancy rates in three quarters.
Market Data | May 30, 2019
Construction employment increases in 250 out of 358 metros from April 2018 to April 2019
Demand for work is outpacing the supply of workers.
