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 | Jan 18, 2017
Architecture Billings Index ends year on positive note
Architecture firms close 2016 with the strongest performance of the year.
Market Data | Jan 12, 2017
73% of construction firms plan to expand their payrolls in 2017
However, many firms remain worried about the availability of qualified workers.
Market Data | Jan 9, 2017
Trump market impact prompts surge in optimism for U.S. engineering firm leaders
The boost in firm leader optimism extends across almost the entire engineering marketplace.
Market Data | Jan 5, 2017
Nonresidential spending thrives in strong November spending report
Many construction firms have reported that they remain busy but have become concerned that work could dry up in certain markets in 2017 or 2018, says Anirban Basu, ABC Chief Economist.
Market Data | Dec 21, 2016
Architecture Billings Index up slightly in November
New design contracts also return to positive levels, signifying future growth in construction activity.
Market Data | Dec 21, 2016
Will housing adjust to an aging population?
New Joint Center report projects 66% increase in senior heads of households by 2035.
Market Data | Dec 13, 2016
ABC predicts modest growth for 2017 nonresidential construction sector; warns of vulnerability for contractor
“The U.S. economy continues to expand amid a weak global economy and, despite risks to the construction industry, nonresidential spending should expand 3.5 percent in 2017,” says ABC Chief Economist Anirban Basu.
Market Data | Dec 2, 2016
Nonresidential construction spending gains momentum
Nonresidential spending is now 2.6 percent higher than at the same time one year ago.
Market Data | Nov 30, 2016
Marcum Commercial Construction Index reports industry outlook has shifted; more change expected
Overall nonresidential construction spending in September totaled $690.5 billion, down a slight 0.7 percent from a year earlier.
Industry Research | Nov 30, 2016
Multifamily millennials: Here is what millennial renters want in 2017
It’s all about technology and convenience when it comes to the things millennial renters value most in a multifamily facility.
