Construction employment in May remained below the April level in 40 states and the District of Columbia, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said skyrocketing materials prices and excessive delays in receiving key construction supplies were holding back the industry’s recovery.
“Today’s numbers show that impacts from the pandemic on demand for projects and on materials costs and the supply chain are weighing down construction in most parts of the country,” said Ken Simonson, the association’s chief economist. “In the few states where industry employment has topped the pre-pandemic levels of February 2020, most gains are likely attributable more to demand for homebuilding and remodeling than to most categories of nonresidential building and infrastructure projects.”
From April to May, construction employment decreased in 40 states and D.C., increased in only eight states, and held steady in Maryland and Utah. The largest decline over the month occurred in New York, which lost 5,900 construction jobs or 1.6%, followed by Illinois (-5,600 jobs, -2.5%) and Pennsylvania (-3,300 jobs, -1.3%). The steepest percentage declines since April occurred in Vermont (-3.9%, -600 jobs), followed by Maine (-3.5%, -1,100 jobs) and Delaware (-3.0%, -300 jobs).
Florida added the most construction jobs between April and May (3,700 jobs, 0.6%), followed by Michigan (1,600 jobs, 0.9%) and Minnesota (1,200 jobs, 0.9%). Oklahoma had the largest percentage gain for the month (1.3%, 1,000 jobs), followed by Minnesota and Michigan.
Employment declined from the pre-pandemic peak month of February 2020 in 42 states and D.C. Texas lost the most construction jobs over the period (-49,100 jobs or -6.3%), followed by New York (-45,200 jobs, -11.1%) and California (-30,800 jobs, -3.4%). Wyoming recorded the largest percentage loss (-15.3%, -3,500 jobs), followed by Louisiana (-15.1%, -20,700 jobs) and New York.
Among the eight states that added construction jobs since February 2020, the largest pickup occurred in Utah (5,000 jobs, 4.4%), followed by Idaho (3,400 jobs, 6.2%) and South Dakota (1,200 jobs, 5.0%). The largest percentage gain was in Idaho, followed by South Dakota and Utah.
Association officials noted that cost increases and extended lead times for producing many construction materials are exacerbating a slow recovery for construction. They urged the Biden administration to accelerate its timetable for reaching agreement with allies on removing tariffs on steel and aluminum, and to initiate talks to end tariffs on Canadian lumber.
“Federal officials can help get more construction workers employed by removing tariffs on essential construction materials such as lumber, steel and aluminum,” said Stephen E. Sandherr, the association’s chief executive officer. “These tariffs are causing unnecessary harm to construction workers and firms, as well as to the administration’s goals of building more affordable housing and infrastructure.”
View state February 2020-May 2021 data, 15-month rankings, 1-month rankings.
Related Stories
Market Data | Mar 14, 2018
AGC: Tariff increases threaten to make many project unaffordable
Construction costs escalated in February, driven by price increases for a wide range of building materials, including steel and aluminum.
Market Data | Mar 12, 2018
Construction employers add 61,000 jobs in February and 254,000 over the year
Hourly earnings rise 3.3% as sector strives to draw in new workers.
Steel Buildings | Mar 9, 2018
New steel and aluminum tariffs will hurt construction firms by raising materials costs; potential trade war will dampen demand, says AGC of America
Independent studies suggest the construction industry could lose nearly 30,000 jobs as a result of administration's new tariffs as many firms will be forced to absorb increased costs.
Market Data | Mar 8, 2018
Prioritizing your marketing initiatives
It’s time to take a comprehensive look at your plans and figure out the best way to get from Point A to Point B.
Market Data | Mar 6, 2018
Persistent workforce shortages challenge commercial construction industry as U.S. building demands continue to grow
To increase jobsite efficiency and improve labor productivity, increasingly more builders are turning to alternative construction solutions.
Market Data | Mar 2, 2018
Nonresidential construction spending dips slightly in January
Private nonresidential construction fell 1.5% for the month, while public sector nonresidential spending increased 1.9%.
Market Data | Feb 27, 2018
AIA small firm report: Half of employees have ownership stake in their firm
The American Institute of Architects has released its first-ever Small Firm Compensation Report.
Market Data | Feb 21, 2018
Strong start for architecture billings in 2018
The American Institute of Architects reported the January 2018 ABI score was 54.7, up from a score of 52.8 in the previous month.
Multifamily Housing | Feb 15, 2018
United States ranks fourth for renter growth
Renters are on the rise in 21 of the 30 countries examined in RentCafé’s recent study.
Market Data | Feb 1, 2018
Nonresidential construction spending expanded 0.8% in December, brighter days ahead
“The tax cut will further bolster liquidity and confidence, which will ultimately translate into more construction starts and spending,” said ABC Chief Economist Anirban Basu.