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 | May 10, 2018
Construction costs surge in April as new tariffs and other trade measures lead to significant increases in materials prices
Association officials warn that the new tariffs and resulting price spikes have the potential to undermine benefits of tax and regulatory reform, urge administration to reconsider.
Market Data | May 7, 2018
Construction employers add 17,000 jobs in April and 257,000 for the year
Unemployment rate for construction increases slightly compared to year earlier as higher pay levels appears to be attracting people with recent construction experience back into the workforce.
Market Data | May 2, 2018
Construction employment increases in 245 metro areas between March 2017 & 2018, as trade fights & infrastructure funding shortfalls loom
Houston-The Woodlands-Sugar Land, Texas and Weirton-Steubenville, W.Va.-Ohio experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines.
Market Data | May 2, 2018
Nonresidential Construction down in March, private sector falters, public sector unchanged
February’s spending estimate was revised roughly $10 billion higher.
Market Data | Apr 30, 2018
Outlook mixed for renewable energy installations in Middle East and Africa region
Several major MEA countries are actively supporting the growth of renewable energy.
Market Data | Apr 12, 2018
Construction costs climb in March as wide range of input costs jump
Association officials urge Trump administration, congress to fund infrastructure adequately as better way to stimulate demand than tariffs that impose steep costs on contractors and project owners.
Market Data | Apr 9, 2018
Construction employers add 228,000 jobs over the year despite dip in March
Average hourly earnings increase to $29.43 in construction, topping private sector by nearly 10%; Association officials urge updating and better funding programs to train workers for construction jobs.
Market Data | Apr 4, 2018
Construction employment increases in 257 metro areas between February 2017 & 2018 as construction firms continue to expand amid strong demand
Riverside-San Bernardino-Ontario, Calif. and Merced, Calif. experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines in construction employment.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Market Data | Mar 29, 2018
AIA and the University of Minnesota partner to develop Guides for Equitable Practice
The Guides for Equitable Practice will be developed and implemented in three phase.
