Construction employment in March remained below March 2020 levels in 35 states despite a sizzling homebuilding market and a strong recovery from severe winter weather, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials cautioned, however, that a host of challenges, including continued project cancellations, rising materials prices, and supply chain uncertainties are making business conditions for contractors difficult.
“Nonresidential contractors are coping with a depleted list of projects, extreme cost increases, and unprecedented supply-chain problems,” said Ken Simonson, the association’s chief economist. “These headwinds are likely to keep industry employment in many states below pre-pandemic levels for months.”
Seasonally adjusted construction employment in March exceeded the March 2020 level in only 14 states and the District of Columbia. Utah added the most jobs (6,400 jobs or 5.6%), trailed by Idaho (3,900 jobs, 7.0%) and Washington (2,200 jobs, 1.0%). Idaho added the highest percentage, followed by Utah and South Dakota (3.8%, 900 jobs).
Employment declined year-over-year in 35 states and stagnated in Mississippi. Texas lost the most construction jobs over the period (-35,400 jobs or -4.5%), followed by New York (-29,300 jobs, -7.2%), Louisiana (-16,500 jobs, -12.4%), and New Jersey (-14,500 jobs, -8.9%). Wyoming recorded the largest percentage loss (-12.7%, -2,900 jobs), followed by Louisiana, New Jersey, and Nevada (-8.1%, -8,000 jobs).
For the month, construction employment rebounded in 39 states—some of which had been battered by unusually severe winter weather in February—while 10 states lost jobs, and there was no change in D.C. and New Hampshire. Texas added the most construction jobs (19,100 jobs, 2.6%) as work resumed following a damaging freeze in February. Other states with large monthly gains include New York (10,000 jobs, 2.7%), Minnesota (7,900 jobs, 6.8%), and Iowa (7,500 jobs, 10.3%). Iowa had the largest percentage gain, followed by Kansas (10.0%, 6,000 jobs) and Minnesota. Nevada lost the largest number and percentage of construction jobs for the month (-1,300 jobs, -1.4%).
Association officials said Washington leaders could help address many of the challenges facing commercial contractors. They noted, for example that proposed new investments in infrastructure will help offset continued private sector project cancellations. And they renewed their calls for the Biden administration to remove tariffs on key construction materials, including steel and lumber, and explore actions to unjam ports and other shipping facilities.
“Nicer weather and expanding confidence that the pandemic will soon end are helping improve market conditions,” said Stephen E. Sandherr, the association’s chief executive officer. “But the best way for policy makers to support continued job growth in the construction industry is to invest in infrastructure, remove government-imposed additions to materials prices, and help get the country’s supply chain back in order.”
View state March 2020-March 2021 data, 12-month rankings, 1-month rankings and map.
Related Stories
Market Data | Jun 22, 2020
New House infrastructure package will provide needed investments in aging infrastructure, support economic recovery, and create jobs
The Moving Forward Act’s proposed $1.5 trillion in new investments will improve range of public infrastructure, creating needed demand for construction while making the economy more efficient.
Market Data | Jun 22, 2020
7 must reads for the AEC industry today: June 22, 2020
Construction employment rises from April to May in 45 states and the first building in the U.S. designed for post COVID-19 environment.
Market Data | Jun 22, 2020
Construction employment rises from April to May in 45 states, slips in 5
Rebound from April job losses reflects one-shot help from paycheck protection program loans and easing of stay-at-home orders, but cancellations and state and local deficits imply further cuts ahead.
Market Data | Jun 19, 2020
7 must reads for the AEC industry today: June 19, 2020
Brown University's first housing building in three decades and demand for family rentals expected to jump.
Market Data | Jun 18, 2020
New data shows construction activity returning to pre-coronavirus levels in many parts of the country
Association survey and data collected by Procore measure impacts of the pandemic, showing signs of a construction recovery, but labor shortages and project cancellations show industry needs federal help.
Market Data | Jun 18, 2020
AIA releases strategies and illustrations for reducing risk of COVID-19 in schools
For the 2020-21 school year, districts are facing the difficult task of determining if K-12 schools will reopen this fall.
Market Data | Jun 18, 2020
6 must reads for the AEC industry today: June 18, 2020
Northbrook's new cannabis dispensary and America's structural steel industry remains a success story.
Market Data | Jun 17, 2020
6 must reads for the AEC industry today: June 17, 2020
Santa Fe becomes the second city in the world to achieve LEED v4.1 and the megacity is dead.
Market Data | Jun 16, 2020
7 must reads for the AEC industry today: June 16, 2020
Tottenham Hotspur Stadium has its own brewery and workers want policy changes before they return to offices.
Market Data | Jun 15, 2020
International Code Council offers guidance on building re-occupancy for reopening economies
Companies and building managers can access free resources at the Code Council’s Coronavirus Response Center.
