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 | Jan 12, 2018
Construction input prices inch down in December, Up YOY despite low inflation
Energy prices have been more volatile lately.
Market Data | Jan 4, 2018
Nonresidential construction spending ticks higher in November, down year-over-year
Despite the month-over-month expansion, nonresidential spending fell 1.3 percent from November 2016.
Contractors | Jan 4, 2018
Construction spending in a ‘mature’ period of incremental growth
Labor shortages are spiking wages. Materials costs are rising, too.
Market Data | Dec 20, 2017
Architecture billings upturn shows broad strength
The American Institute of Architects (AIA) reported the November ABI score was 55.0, up from a score of 51.7 in the previous month.
Market Data | Dec 14, 2017
ABC chief economist predicts stable 2018 construction economy
There are risks to the 2018 outlook as a number of potential cost increases could come into play.
Market Data | Dec 13, 2017
Top world regions and markets in the global hotel construction pipeline
The top world region by project count is North America.
Market Data | Dec 11, 2017
Global hotel construction pipeline is growing
The Total Pipeline stands at 12,427 Projects/2,084,940 Rooms.
Market Data | Dec 11, 2017
Construction backlog surges, sets record in third quarter
CBI is a leading economic indicator that reflects the amount of construction work under contract, but not yet completed.
Market Data | Dec 7, 2017
Buoyed by healthy economy, ABC Index finds contractors upbeat
Despite rising construction labor and materials costs, 55% of contractors expect their profit margins to expand in the first half of 2018.
Market Data | Dec 5, 2017
Top health systems engaged in $21 billion of U.S. construction projects
Largest active projects are by Sutter Health, New York Presbyterian, and Scripps Health.