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
Contractors | Jul 13, 2023
Construction input prices remain unchanged in June, inflation slowing
Construction input prices remained unchanged in June 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. Nonresidential construction input prices were also unchanged for the month.
Contractors | Jul 11, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of June 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in June 2023, according to an ABC member survey conducted June 20 to July 5. The reading is unchanged from June 2022.
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, 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 $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
| Jun 5, 2023
Communication is the key to AEC firms’ mental health programs and training
The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.
Contractors | May 24, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023
Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.
Multifamily Housing | May 23, 2023
One out of three office buildings in largest U.S. cities are suitable for residential conversion
Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.