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 | Nov 29, 2016
It’s not just traditional infrastructure that requires investment
A national survey finds strong support for essential community buildings.
Industry Research | Nov 28, 2016
Building America: The Merit Shop Scorecard
ABC releases state rankings on policies affecting construction industry.
Multifamily Housing | Nov 28, 2016
Axiometrics predicts apartment deliveries will peak by mid 2017
New York is projected to lead the nation next year, thanks to construction delays in 2016
Market Data | Nov 22, 2016
Construction activity will slow next year: JLL
Risk, labor, and technology are impacting what gets built.
Market Data | Nov 17, 2016
Architecture Billings Index rebounds after two down months
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Nov 11, 2016
Brand marketing: Why the B2B world needs to embrace consumers
The relevance of brand recognition has always been debatable in the B2B universe. With notable exceptions like BASF, few manufacturers or industry groups see value in generating top-of-mind awareness for their products and services with consumers.
Industry Research | Nov 8, 2016
Austin, Texas wins ‘Top City’ in the Emerging Trends in Real Estate outlook
Austin was followed on the list by Dallas/Fort Worth, Texas and Portland, Ore.
Market Data | Nov 2, 2016
Nonresidential construction spending down in September, but August data upwardly revised
The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion.
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.