flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction jobs rise by 464,000 jobs but remain 596,000 below recent peak

Market Data

Construction jobs rise by 464,000 jobs but remain 596,000 below recent peak

Gains in may reflect temporary support from paycheck protection program loans and easing of construction restrictions, but hobbled economy and tight state and local budgets risk future job losses.


By AGC | June 8, 2020

Courtesy Pixabay

Construction employment rebounded by 464,000 jobs in May, but the total remained 596,000 below the latest peak in February and the industry’s 12.7 percent unemployment rate was the highest for May since 2012, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned that the future job losses are likely as temporary federal support programs end, state and local officials deal with tighter budgets and private sector demand declines later this year.

“The huge pickup in construction employment in May is good news and probably reflects the industry’s widespread receipt of Paycheck Protection Program loans and the loosening of restrictions on business activity in some states,” said Ken Simonson, the association’s chief economist. “Nevertheless, the industry remains far short of full employment, and more layoffs may be imminent.

Simonson noted that the association’s latest survey found that nearly one-fourth of contractors reported a project that was scheduled to start in June or later had been canceled. He added that with most states and localities starting a new fiscal year on July 1, even more public construction is likely to be canceled unless the federal government makes up for some of their lost revenue and unbudgeted expenses.

The gain of 464,000 jobs in May followed losses of 995,000 in April and 65,000 in March, for a cumulative loss over three months of 596,000. Construction employment totaled 7,043,000 in May, about where it stood in late 2017, the economist noted.

The industry’s unemployment rate in May was 12.7 percent, with 1,187,000 former construction workers idled. These figures were roughly four times as high as in May 2019 and were the highest May levels since 2012 and 2011, respectively.

Association officials said the best way to avoid the expected future construction job losses is for federal officials to boost funding for infrastructure, including highway, bridges, waterways and airports. They noted that the additional funding would help cover expected state and local budget shortfalls and would help replace expected declines in private-sector demand.

“Government officials have done a good job providing temporary relief for firms struggling to cope with the economic impacts of the pandemic,” said Stephen E. Sandherr, the association’s chief executive officer. “As those temporary supports end, the broader economic realities of the lock-downs will cost countless construction jobs unless Congress and the Administration can work together to enact measures to revive the economy.”

Related Stories

Market Data | Feb 2, 2022

Majority of metro areas added construction jobs in 2021

Soaring job openings indicate that labor shortages are only getting worse.

Market Data | Feb 2, 2022

Construction spending increased in December for the month and the year

Nonresidential and public construction lagged residential sector.

Market Data | Jan 31, 2022

Canada's hotel construction pipeline ends 2021 with 262 projects and 35,325 rooms

At the close of 2021, projects under construction stand at 62 projects/8,100 rooms.

Market Data | Jan 27, 2022

Record high counts for franchise companies in the early planning stage at the end of Q4'21

Through year-end 2021, Marriott, Hilton, and IHG branded hotels represented 585 new hotel openings with 73,415 rooms.

Market Data | Jan 27, 2022

Dallas leads as the top market by project count in the U.S. hotel construction pipeline at year-end 2021

The market with the greatest number of projects already in the ground, at the end of the fourth quarter, is New York with 90 projects/14,513 rooms.

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.

boombox1
boombox2
native1

More In Category


Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, 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 $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.



Construction Costs

Data center construction costs for 2024

Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers. 

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021