Construction employment decreased from March 2020 to March 2021 in 203, or 57%, of the nation’s metro areas, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that the industry’s broader recovery in many parts of the country is being hampered by rising materials prices, supply chain disruptions and project cancellations.
“Nearly twice as many metros have lost construction jobs as gained them in the past 12 months, even though homebuilding has recovered strongly and the overall economy is in much better shape than it was a year ago,” said Ken Simonson, the association’s chief economist. “Nonresidential construction is still at risk of further declines in much of the country.”
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 12-month period (-31,000 jobs, -13%), followed by New York City (-24,000 jobs, -15%); Midland, Texas (-10,000 jobs, -26%); Odessa, Texas (-8,000 jobs, -39%); and Nassau County-Suffolk County, N.Y. ( 7,900 jobs, -10%). Odessa had the largest percentage decline, followed by Lake Charles, La. (-35%, -6,800 jobs); Midland; Longview, Texas (-24%, -3,600 jobs) and Greeley, Colo. (-21%, -4,100 jobs).
Only 104, or 29%, out of 358 metro areas added construction jobs during the past 12 months, while construction employment was stagnant in 51 metro areas. Seattle-Bellevue-Everett, Wash. added the most construction jobs over 12 months (5,300 jobs, 5%), followed by Indianapolis-Carmel-Anderson, Ind. (4,300 jobs, 8%); Austin-Round-Rock, Texas (4,000 jobs, 6%); Sacramento--Roseville--Arden-
Association officials said that construction firms were being squeezed by rapidly rising materials prices while they are unable to charge more for construction projects amid broader market uncertainties caused by the pandemic. They urged federal officials to ease tariffs on key construction materials – including steel and lumber – to address materials prices and to boost investments in infrastructure to boost demand.
“Construction employment is not going to rebound in many parts of the country while firms are struggling to afford the materials they need to complete existing projects,” said Stephen E. Sandherr, the association’s chief executive officer. “Once federal officials take immediate and effective steps to address both spiking prices and lagging demand, employment levels should rebound in more of the country.”
View the metro employment 12-month data, rankings, top 10, multi-division metros, and map.
Related Stories
Market Data | Nov 18, 2020
Architecture billings remained stalled in October
The pace of decline during October remained at about the same level as in September.
Market Data | Nov 17, 2020
Architects face data, culture gaps in fighting climate change
New study outlines how building product manufacturers can best support architects in climate action.
Market Data | Nov 10, 2020
Construction association ready to work with president-elect Biden to prepare significant new infrastructure and recovery measures
Incoming president and congress should focus on enacting measures to rebuild infrastructure and revive the economy.
Market Data | Nov 9, 2020
Construction sector adds 84,000 workers in October
A growing number of project cancellations risks undermining future industry job gains.
Market Data | Nov 4, 2020
Drop in nonresidential construction offsets most residential spending gains as growing number of contractors report cancelled projects
Association officials warn that demand for nonresidential construction will slide further without new federal relief measures.
Market Data | Nov 2, 2020
Nonresidential construction spending declines further in September
Among the sixteen nonresidential subcategories, thirteen were down on a monthly basis.
Market Data | Nov 2, 2020
A white paper assesses seniors’ access to livable communities
The Joint Center for Housing Studies and AARP’s Public Policy Institute connect livability with income, race, and housing costs.
Market Data | Nov 2, 2020
More contractors report canceled projects than starts, survey finds
Construction employment declined in most metros in latest 12 months.
Multifamily Housing | Oct 30, 2020
The Weekly show: Multifamily security tips, the state of construction industry research, and AGC's market update
BD+C editors speak with experts from AGC, Charles Pankow Foundation, and Silva Consultants on the October 29 episode of "The Weekly." The episode is available for viewing on demand.
Hotel Facilities | Oct 27, 2020
Hotel construction pipeline dips 7% in Q3 2020
Hospitality developers continue to closely monitor the impact the coronavirus will have on travel demand, according to Lodging Econometrics.