Construction employment in December remained below pre-pandemic levels in two-thirds of the states even though 37 states and the District of Columbia added construction jobs from November to December, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said the new data highlights how broadly the industry has been impacted by the pandemic and underscores the need for additional coronavirus recovery measures.
“While most states recorded construction employment gains in December, the pickup is likely to be temporary for many,” said Ken Simonson, the association’s chief economist. “Participants in our association’s recent Hiring and Business Outlook Survey expect the dollar volume of most project types available to bid on to decline in 2021.”
The survey, which included responses from more than 1,300 contractors in every state and D.C., asked about prospects for 16 categories of projects. On balance, respondents expect growth only for non-hospital health care, such as clinics, testing and screening facilities, and medical laboratories; warehouses; and water and sewer projects.
Seasonally adjusted construction employment in December was lower than in February—the last month before the pandemic forced many contractors to suspend work—in 34 states and was unchanged in Kansas, Simonson noted. Texas lost the most construction jobs over the 10-month period (-35,600 jobs or -4.5%), followed by New York (-30,900 jobs, -7.5%), Florida (-17,500 jobs, -3.0%) and New Jersey (-16,700 jobs, -10.0%). Vermont experienced the largest percentage loss (-23.1%, -3,400 jobs), followed by New Jersey.
Only 15 states and the District of Columbia added construction jobs from February to December. Virginia added the most jobs (10,800, 5.3%), followed by Utah (7,000 jobs, 6.1%) and Alabama (6,100 jobs, 6.4%). Alabama added the highest percentage, followed by Utah and South Dakota (5.7%, 1,400 jobs).
Construction employment decreased from November to December in 11 states and D.C., increased in 37 states and was unchanged in North Carolina and Rhode Island. Arizona had the largest loss of construction jobs for the month (-4,100 jobs or -2.3%), followed by Louisiana (-2,000 jobs, -1.5%). Delaware had the largest percentage decline (3.2%, -700 jobs), followed by Arizona, Alaska (-1.9%, -300 jobs), and Louisiana.
California added the most construction jobs over the month (31,600 jobs, 3.7%), followed by New York (8,500, 2.3%) and Illinois (8,300 jobs, 3.8%). New Hampshire had the largest percentage gain for the month (4.0%, 1,100 jobs), followed by Illinois and New Mexico (3.8%, 1,800 jobs).
Association officials said demand for construction will continue to suffer until the coronavirus is under control and urged federal officials to enact measures to help stem additional job losses in the sector. These new measures should include new federal investments in infrastructure, backfilling depleted state and local construction budgets and moving quickly to forgive Paycheck Protection Program loans issued last year.
“Contractors are eager to save as many jobs as possible during the next several months on the expectation demand will return once the coronavirus comes under control,” said Stephen E. Sandherr, the association’s chief executive officer. “Washington officials can help save countless construction careers by acting now to stabilize demand.
View state employment February-December data and rankings; and November-December rankings.
Related Stories
Market Data | May 10, 2022
Hybrid work could result in 20% less demand for office space
Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.
Market Data | May 6, 2022
Nonresidential construction spending down 1% in March
National nonresidential construction spending was down 0.8% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Apr 29, 2022
Global forces push construction prices higher
Consigli’s latest forecast predicts high single-digit increases for this year.
Market Data | Apr 29, 2022
U.S. economy contracts, investment in structures down, says ABC
The U.S. economy contracted at a 1.4% annualized rate during the first quarter of 2022.
Market Data | Apr 20, 2022
Pace of demand for design services rapidly accelerates
Demand for design services in March expanded sharply from February according to a new report today from The American Institute of Architects (AIA).
Market Data | Apr 14, 2022
FMI 2022 construction spending forecast: 7% growth despite economic turmoil
Growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays, and economic turmoil caused by international events such as the Russia-Ukraine war.
Industrial Facilities | Apr 14, 2022
JLL's take on the race for industrial space
In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.
Codes and Standards | Apr 4, 2022
Construction of industrial space continues robust growth
Construction and development of new industrial space in the U.S. remains robust, with all signs pointing to another big year in this market segment
Reconstruction & Renovation | Mar 28, 2022
Is your firm a reconstruction sector giant?
Is your firm active in the U.S. building reconstruction, renovation, historic preservation, and adaptive reuse markets? We invite you to participate in BD+C's inaugural Reconstruction Market Research Report.
Industry Research | Mar 28, 2022
ABC Construction Backlog Indicator unchanged in February
Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.0 months in February, according to an ABC member survey conducted Feb. 21 to March 8.