Construction employment declined in 91 metro areas and was stagnant in another 24 between February 2020, the last month before the pandemic, and May 2021, according to an analysis by the Associated General Contractors of America of government employment data released today. They said the high number of metro areas losing construction jobs during that time frame reflected the impacts of early pandemic shutdowns and more recent challenges procuring construction materials and finding qualified workers to hire.
“The devastating job losses of early 2020 and more recent materials and labor challenges since then have kept industry employment stagnant or lower this May than in February 2020 in nearly one-third of metros,” said Ken Simonson, the association’s chief economist. “Extreme lead times for producing and delivering materials, along with record prices for many items, has led to project delays and cancellations that have chilled hiring.”
Of the 91 metro areas with lower construction employment in May 2021 than in February 2020, Houston-The Woodlands-Sugar Land, Texas lost the most jobs: 30,500 or 13%. Major losses also occurred in New York City (-21,200 jobs, -13%); Midland, Texas (-9,600 jobs, -25%) and Odessa, Texas (-8,300 jobs, -40%). Odessa had the largest percentage decline, followed by Lake Charles, La. (-36%, -7,200 jobs); Midland; Laredo, Texas (-23%, -900 jobs) and Longview, Texas (-22%, -3,300 jobs).
Construction employment increased in 243 metro areas compared to the February 2020 level—far fewer than the 320 metros that typically add construction jobs between February and May, Simonson noted. Minneapolis-St. Paul-Bloomington, Minn.-Wis. added the most construction jobs over 15 months (11,100 jobs, 14%), followed by Indianapolis-Carmel-Anderson, Ind. (10,900 jobs, 21%); Chicago-Naperville-Arlington Heights, Ill. (10,300 jobs, 9%); Seattle-Bellevue-Everett, Wash. (6,900 jobs, 7%); and Pittsburgh, Pa. (6,900 jobs, 12%). Fargo, N.D.-Minn. had the highest percentage increase (45%, 3,300 jobs), followed by Sierra Vista-Douglas, Ariz. (44%, 1,100 jobs); and Bay City, Mich. (36%, 400 jobs).
Association officials said that many construction firms report challenges with rising materials prices, supply chain problems that are leading to delivery delays for key components and challenges finding qualified labor to hire. They urged the Biden administration and Congress to work together to remove tariffs on key construction materials, ease supply chain shortages and boost investments in career and technical education. They added that the association posted an updated Construction Inflation Alert to inform owners and officials about the worsening problems with rising materials costs, shipping delays and labor shortages.
“It is hard for the construction industry to grow while firms struggle to pay for and source key materials and have a hard time finding qualified workers to hire,” said Stephen E. Sandherr, the association’s chief executive officer. “Federal officials can help the industry and boost the economy by removing tariffs, easing supply chain backups and investing in workforce development.”
View the metro employment data, rankings, top 10, multi-division metros, and map. View the Alert.
Related Stories
AEC Tech | Apr 30, 2024
Lack of organizational readiness is biggest hurdle to artificial intelligence adoption
Managers of companies in the industrial sector, including construction, have bought the hype of artificial intelligence (AI) as a transformative technology, but their organizations are not ready to realize its promise, according to research from IFS, a global cloud enterprise software company. An IFS survey of 1,700 senior decision-makers found that 84% of executives anticipate massive organizational benefits from AI.
Hotel Facilities | Apr 24, 2024
The U.S. hotel construction market sees record highs in the first quarter of 2024
As seen in the Q1 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of the first quarter, there are 6,065 projects with 702,990 rooms in the pipeline. This new all-time high represents a 9% year-over-year (YOY) increase in projects and a 7% YOY increase in rooms compared to last year.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Market Data | Apr 16, 2024
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of March 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.2 months in March from 8.1 months in February, according to an ABC member survey conducted March 20 to April 3. The reading is down 0.5 months from March 2023.
K-12 Schools | Apr 10, 2024
Surprise, surprise: Students excel in modernized K-12 school buildings
Too many of the nation’s school districts are having to make it work with less-than-ideal educational facilities. But at what cost to student performance and staff satisfaction?
Multifamily Housing | Apr 9, 2024
March reports record gains in multifamily rent growth in 20 months
Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
Retail Centers | Apr 4, 2024
Retail design trends: Consumers are looking for wellness in where they shop
Consumers are making lifestyle choices with wellness in mind, which ignites in them a feeling of purpose and a sense of motivation. That’s the conclusion that the architecture and design firm MG2 draws from a survey of 1,182 U.S. adult consumers the firm conducted last December about retail design and what consumers want in healthier shopping experiences.
Market Data | Apr 1, 2024
Nonresidential construction spending dips 1.0% in February, reaches $1.179 trillion
National nonresidential construction spending declined 1.0% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.179 trillion.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
K-12 Schools | Mar 18, 2024
New study shows connections between K-12 school modernizations, improved test scores, graduation rates
Conducted by Drexel University in conjunction with Perkins Eastman, the research study reveals K-12 school modernizations significantly impact key educational indicators, including test scores, graduation rates, and enrollment over time.