Construction employment in January remained below pre-pandemic levels in all but eight states, according to an analysis by the Associated General Contractors of America of government employment data released today, while more firms have reduced headcount than have added to it in the past year, the association’s recent survey shows. Association officials said the jobs figures and survey results underscore the need for federal measures to stem future sector job losses.
“Despite improvement in many sectors of the economy, nonresidential contractors are coping with widespread project cancellations and postponements, soaring materials costs, and lengthening delivery times,” said Ken Simonson, the association’s chief economist. “That combination makes further job cuts likely in many states.”
The survey, which included responses from nearly 1500 firms, found 34% had reduced their employee count in the past year, compared to just 20% that had added employees. More than three-fourths of the firms had experienced project cancellations or deferrals, while only 21% reported winning new projects or add-ons to existing projects in the past two months.
Seasonally adjusted construction employment in January 2021 was lower than in February 2020—the last month before the pandemic forced many contractors to suspend work—in 42 states and was unchanged in the District of Columbia. Texas lost the most construction jobs over the period (-51,900 jobs or -6.6%), followed by California (-36,200 jobs, -4.0%), and New York (-26,000 jobs, -6.4%). Louisiana experienced the largest percentage loss (-14.0%, -19,200 jobs), followed by Wyoming (-9.6%, -2,200 jobs).
Only eight states added construction jobs from February 2020 to January 2021. Idaho added the most jobs (4,500 jobs, 8.2%), trailed by Utah (3,300 jobs, 2.9%), Alabama (6,100 jobs, 6.4%) and Arkansas (1,900 jobs, 3.6%,). Idaho added the highest percentage, followed by Arkansas and Alaska (3.0%, 500 jobs).
From December to January,19 states and D.C. lost construction jobs, 27 states added jobs, and there was no change in Alaska, North and South Dakota, and Wyoming. California had the largest loss of construction jobs for the month (-4,000 jobs or -0.5%), followed by South Carolina (-3,200 jobs, -3.0%) and Illinois (-3,200 jobs, -1.4%). South Carolina had the largest percentage decline, followed by Wisconsin (-2.4%, -3,000 jobs).
Florida added the most construction jobs over the month (3,500 jobs, 0.6%), followed by Texas (0.4%). Vermont had the largest monthly percentage gain (3.4%, 500 jobs), trailed by Idaho (3.3%, 1,900 jobs).
Association officials said demand for construction will continue to suffer amid pandemic-induced economic uncertainty and urged federal officials to enact measures to help stem additional job losses in the sector. These new measures should include new federal investments in infrastructure, ending tariffs on key construction materials, addressing supply chain backups and avoiding costly and unneeded new regulatory burdens.
“The pandemic is driving away projects, contributing to spiking materials prices and helping make delivery schedules unreliable,” said Stephen E. Sandherr, the association’s chief executive officer. “Contractors will not be able to build back better if they have to keep paying higher prices for materials that rarely arrive on time.”
View state February 2020-January 2021 data and rankings and December-January rankings. View AGC’s survey.
Related Stories
Market Data | Jul 21, 2022
Architecture Billings Index continues to stabilize but remains healthy
Architecture firms reported increasing demand for design services in June, according to a new report today from The American Institute of Architects (AIA).
Market Data | Jul 21, 2022
Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023
Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA).
Building Team | Jul 18, 2022
Understanding the growing design-build market
FMI’s new analysis of the design-build market forecast for the next fives years shows that this delivery method will continue to grow, despite challenges from the COVID-19 pandemic.
Market Data | Jul 1, 2022
Nonresidential construction spending slightly dips in May, says ABC
National nonresidential construction spending was down by 0.6% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Jun 30, 2022
Yardi Matrix releases new national rent growth forecast
Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021.
Market Data | Jun 22, 2022
Architecture Billings Index slows but remains strong
Architecture firms reported increasing demand for design services in May, according to a new report today from The American Institute of Architects (AIA).
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.
