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 | May 10, 2018
Construction costs surge in April as new tariffs and other trade measures lead to significant increases in materials prices
Association officials warn that the new tariffs and resulting price spikes have the potential to undermine benefits of tax and regulatory reform, urge administration to reconsider.
Market Data | May 7, 2018
Construction employers add 17,000 jobs in April and 257,000 for the year
Unemployment rate for construction increases slightly compared to year earlier as higher pay levels appears to be attracting people with recent construction experience back into the workforce.
Market Data | May 2, 2018
Construction employment increases in 245 metro areas between March 2017 & 2018, as trade fights & infrastructure funding shortfalls loom
Houston-The Woodlands-Sugar Land, Texas and Weirton-Steubenville, W.Va.-Ohio experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines.
Market Data | May 2, 2018
Nonresidential Construction down in March, private sector falters, public sector unchanged
February’s spending estimate was revised roughly $10 billion higher.
Market Data | Apr 30, 2018
Outlook mixed for renewable energy installations in Middle East and Africa region
Several major MEA countries are actively supporting the growth of renewable energy.
Market Data | Apr 12, 2018
Construction costs climb in March as wide range of input costs jump
Association officials urge Trump administration, congress to fund infrastructure adequately as better way to stimulate demand than tariffs that impose steep costs on contractors and project owners.
Market Data | Apr 9, 2018
Construction employers add 228,000 jobs over the year despite dip in March
Average hourly earnings increase to $29.43 in construction, topping private sector by nearly 10%; Association officials urge updating and better funding programs to train workers for construction jobs.
Market Data | Apr 4, 2018
Construction employment increases in 257 metro areas between February 2017 & 2018 as construction firms continue to expand amid strong demand
Riverside-San Bernardino-Ontario, Calif. and Merced, Calif. experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines in construction employment.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Market Data | Mar 29, 2018
AIA and the University of Minnesota partner to develop Guides for Equitable Practice
The Guides for Equitable Practice will be developed and implemented in three phase.
