Construction employment in November remained below pre-pandemic levels in 35 states and the District of Columbia even though 31 states and D.C. added construction jobs from October to November, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials urged federal officials to swiftly renew a program to enable firms to keep workers on their payrolls while the pandemic is pushing back the start date for many projects.
“An increase in project cancellations and postponements is forcing nonresidential contractors to lay off workers as they complete projects started before the pandemic and firms exhaust their Paycheck Protection Program loans,” said Ken Simonson, the association’s chief economist. “Despite strong demand for single-family homebuilding and remodeling, overall industry employment is likely to shrink in more states in the absence of federal assistance.”
Seasonally adjusted construction employment in November was lower than in February—the last month before the pandemic forced many contractors to suspend work—in 37 states, Simonson noted. New York lost the most construction jobs over the nine-month period (-39,700 jobs or -9.7%), followed by Texas (-37,200 jobs, -4.7%). Vermont experienced the largest percentage loss (-24.5%, -3,600 jobs), followed by North Dakota (-13.9%, -4,100 jobs).
Only 15 states and the District of Columbia added construction jobs from February to November. Virginia added the most jobs and highest percentage (11,800 jobs, 5.8%), followed by Utah (5,800 jobs, 5.1%).
Construction employment decreased from October to November in 17 states, increased in 31 states and D.C., and was unchanged in Maine and Nebraska. California had the largest loss of construction jobs from October to November (-5,800 jobs or -0.7%), followed by New Jersey (-3,800 jobs, -2.5%) and Nevada (-3,700 jobs, -3.9%). Nevada had the largest percentage decline, followed by South Dakota (-3.8%, -1,000 jobs).
Texas added the most construction jobs over the month (7,500 jobs, 1.0%), followed by Pennsylvania (4,300 jobs, 1.7%). Delaware had the largest percentage gain for the month (3.8%, 800 jobs), followed by Utah (2.6%, 3,000 jobs).
Association officials urged members of Congress to promptly pass a renewal of the Paycheck Protection Program, which saved thousands of construction workers from layoffs earlier in the year. They added that the legislation should also make clear that Congress did not intend for firms to incur tax liability when using the loans as intended.
“While the pandemic is causing more and more construction to be canceled or postponed, it is imperative that Congress renew the loan program that will keep contractors from shutting their doors and workers from losing their jobs,” said Stephen E. Sandherr, the association’s chief executive officer. “In addition, it is vital that Congress stop the Treasury from playing ‘gotcha’ with firms that rightly expected their loans to be treated as nontaxable.”
View state employment February-November data and rankings; and October-November rankings.
Related Stories
Market Data | Jan 26, 2022
2022 construction forecast: Healthcare, retail, industrial sectors to lead ‘healthy rebound’ for nonresidential construction
A panel of construction industry economists forecasts 5.4 percent growth for the nonresidential building sector in 2022, and a 6.1 percent bump in 2023.
Market Data | Jan 24, 2022
U.S. hotel construction pipeline stands at 4,814 projects/581,953 rooms at year-end 2021
Projects scheduled to start construction in the next 12 months stand at 1,821 projects/210,890 rooms at the end of the fourth quarter.
Market Data | Jan 19, 2022
Architecture firms end 2021 on a strong note
December’s Architectural Billings Index (ABI) score of 52.0 was an increase from 51.0 in November.
Market Data | Jan 13, 2022
Materials prices soar 20% in 2021 despite moderating in December
Most contractors in association survey list costs as top concern in 2022.
Market Data | Jan 12, 2022
Construction firms forsee growing demand for most types of projects
Seventy-four percent of firms plan to hire in 2022 despite supply-chain and labor challenges.
Market Data | Jan 7, 2022
Construction adds 22,000 jobs in December
Jobless rate falls to 5% as ongoing nonresidential recovery offsets rare dip in residential total.
Market Data | Jan 6, 2022
Inflation tempers optimism about construction in North America
Rider Levett Bucknall’s latest report cites labor shortages and supply chain snags among causes for cost increases.
Market Data | Jan 6, 2022
A new survey offers a snapshot of New York’s construction market
Anchin’s poll of 20 AEC clients finds a “growing optimism,” but also multiple pressure points.
Market Data | Jan 3, 2022
Construction spending in November increases from October and year ago
Construction spending in November totaled $1.63 trillion at a seasonally adjusted annual rate.
Market Data | Dec 22, 2021
Two out of three metro areas add construction jobs from November 2020 to November 2021
Construction employment increased in 237 or 66% of 358 metro areas over the last 12 months.