Construction employment decreased from February 2020 to February 2021 in 236 of the nation’s metro areas, according to an analysis by the Associated General Contractors of America of government employment data released today, amid project cancellations, rising material prices and supply chain problems. Association officials said that the industry will struggle to add jobs in the future if a series of proposed new labor laws, including the PRO Act, were to be put into law by the current Congress and administration.
“Relatively few places have recovered from the pandemic-induced impacts on the construction industry,” said Ken Simonson, the association’s chief economist. “Project cancellations, spiking materials prices and significant supply chain challenges are making it hard for most firms to add new construction jobs compared to a year ago.”
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 12-month period (-37,600 jobs, -16%), followed by New York City (-26,700 jobs, -17%); Chicago-Naperville-Arlington Heights, Ill. (-12,900 jobs, -11%) and Midland, Texas (-11,600 jobs, -31%). Odessa, Texas had the largest percentage decline (-40%, -8,200 jobs), followed by Lake Charles, La. (-39%, -7,700 jobs); Midland; Longview, Texas (-23%, -3,400 jobs) and Laredo, Texas (-23%, -900 jobs).
Only 83 metro areas added construction jobs during the past 12 months, while construction employment was stagnant in 39 metro areas. Sacramento--Roseville--Arden-
Association officials cautioned that federal officials are considering a host of measures that will not only undermine proposed new infrastructure investments, but also make it harder for firms to add new employees. Foremost among those challenges are the PRO Act, which would unleash a new wave of labor instability. The measure would likely lead to a host of new strikes and jobsite disruptions that will make it hard for firms to add new employees.
“It will be hard for firms to add new employees if they have no idea whether the jobs they are working on will be shut down because of the wide range of labor actions encouraged by the PRO Act,” said Stephen E. Sandherr, the association’s chief executive officer. “New infrastructure investments will certainly help the industry, but our members won’t be able to build back better if the work is mired in labor uncertainty.”
View the metro employment 12-month data, rankings, top 10, multi-metro division, and map.
Related Stories
Building Team | Jun 17, 2022
Data analytics in design and construction: from confusion to clarity and the data-driven future
Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.
Market Data | Jun 15, 2022
ABC’s construction backlog rises in May; contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.
Market Data | May 18, 2022
Architecture Billings Index moderates slightly, remains strong
For the fifteenth consecutive month architecture firms reported increasing demand for design services in April, according to a new report today from The American Institute of Architects (AIA).
Market Data | May 12, 2022
Monthly construction input prices increase in April
Construction input prices increased 0.8% in April compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today.
Market Data | May 10, 2022
Hybrid work could result in 20% less demand for office space
Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.
Market Data | May 6, 2022
Nonresidential construction spending down 1% in March
National nonresidential construction spending was down 0.8% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Apr 29, 2022
Global forces push construction prices higher
Consigli’s latest forecast predicts high single-digit increases for this year.
Market Data | Apr 29, 2022
U.S. economy contracts, investment in structures down, says ABC
The U.S. economy contracted at a 1.4% annualized rate during the first quarter of 2022.
Market Data | Apr 20, 2022
Pace of demand for design services rapidly accelerates
Demand for design services in March expanded sharply from February according to a new report today from The American Institute of Architects (AIA).
Market Data | Apr 14, 2022
FMI 2022 construction spending forecast: 7% growth despite economic turmoil
Growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays, and economic turmoil caused by international events such as the Russia-Ukraine war.
