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 | Nov 29, 2016
It’s not just traditional infrastructure that requires investment
A national survey finds strong support for essential community buildings.
Industry Research | Nov 28, 2016
Building America: The Merit Shop Scorecard
ABC releases state rankings on policies affecting construction industry.
Multifamily Housing | Nov 28, 2016
Axiometrics predicts apartment deliveries will peak by mid 2017
New York is projected to lead the nation next year, thanks to construction delays in 2016
Market Data | Nov 22, 2016
Construction activity will slow next year: JLL
Risk, labor, and technology are impacting what gets built.
Market Data | Nov 17, 2016
Architecture Billings Index rebounds after two down months
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Nov 11, 2016
Brand marketing: Why the B2B world needs to embrace consumers
The relevance of brand recognition has always been debatable in the B2B universe. With notable exceptions like BASF, few manufacturers or industry groups see value in generating top-of-mind awareness for their products and services with consumers.
Industry Research | Nov 8, 2016
Austin, Texas wins ‘Top City’ in the Emerging Trends in Real Estate outlook
Austin was followed on the list by Dallas/Fort Worth, Texas and Portland, Ore.
Market Data | Nov 2, 2016
Nonresidential construction spending down in September, but August data upwardly revised
The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion.
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.
