flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

COVID-19 cuts nonresidential construction employment in March

Market Data

COVID-19 cuts nonresidential construction employment in March

The construction unemployment rate was 6.9% in March, up 1.7 percentage points from the same time one year ago.


By ABC | April 3, 2020

Construction industry employment declined by 29,000 in March, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. Nonresidential construction employment declined by 24,600 in March.

All three nonresidential segments registered job losses, with the largest decrease experienced in nonresidential building (-10,700) followed closely by heavy and civil engineering (-10,200). Nonresidential specialty trade lost 3,700 jobs on net.

The construction unemployment rate was 6.9% in March, up 1.7 percentage points from the same time one year ago. Unemployment across all industries rose from 3.5% in February to 4.4% last month, a direct result of the global pandemic.

“So ends the lengthiest expansion in American economic history,” said ABC Chief Economist Anirban Basu. “The expansion was associated with dramatic asset price increases, multi-decade lows in unemployment, persistently low costs of capital and a thriving U.S. nonresidential construction sector. While the March jobs report is horrific, ending a 113-month streak of employment gains, it is clear that employment reports in future months are likely to be even worse.

“What remains unclear is the extent to which estimated construction employment declines are due to mandated suspension of projects in Massachusetts, Pennsylvania, California and elsewhere, and how much of this is due to the emergence of recessionary forces,” said Basu. “Generally, nonresidential construction is one of the last segments of the economy to enter recession as contractors continue to work down their collective backlog, which stood at 8.9 months in ABC’s Construction Backlog Indicator. The need for social distancing renders that statistic less pertinent, meaning that nonresidential construction is susceptible to large-scale job losses immediately.

“While the recently passed stimulus package is massive and helps support the payments side of the economy, economic recovery will remain elusive until the COVID-19-engendered crisis is behind us,” said Basu. “While that is obvious, many people are still looking to compare the current crisis to other episodes in American history, including the Great Recession. As a practical matter, this period defies comparison, and must be understood on its own. Based on what is known, the downturn will be vicious. The good news is that this crisis may finally induce policymakers to fashion and implement a long-awaited infrastructure stimulus package.”

 

 

 

Related Stories

Market Data | Apr 23, 2020

Construction Contractor Confidence plummets in February

As of February 2020, fewer than 30% of contractors expected their sales to increase over the next six months.

Market Data | Apr 23, 2020

5 must reads for the AEC industry today: April 23, 2020

The death of the department store and how to return to work when the time comes.

Market Data | Apr 22, 2020

6 must reads for the AEC industry today: April 22, 2020

Repurposed containers can be used as rapid response airborne infection isolation rooms and virtual site visits help control infection on project sites.

Market Data | Apr 21, 2020

ABC's Construction Backlog Indicator down in February

Backlog for firms working in the infrastructure segment rose by 1.3 months in February while backlog for commercial and institutional and heavy industrial firms declined by 0.6 months and 0.7 months, respectively.

Market Data | Apr 21, 2020

5 must reads for the AEC industry today: April 21, 2020

IoT system helps contractors keep their distance and the multifamily market flattens.

Market Data | Apr 20, 2020

6 must reads for the AEC industry today: April 20, 2020

The continent's tallest living wall and NMHC survey shows significant delays in apartment construction.

Market Data | Apr 17, 2020

Construction employment declines in 20 states and D.C. in March, in line with industry survey showing growing job losses for the sector

New monthly job loss data foreshadows more layoffs amid project cancellations and state cutbacks in road projects as association calls for more small business relief and immediate aid for highway funding.

Market Data | Apr 17, 2020

5 must reads for the AEC industry today: April 17, 2020

Meet the 'AEC outsiders' pushing the industry forward and the world's largest Living Building.

Market Data | Apr 16, 2020

5 must reads for the AEC industry today: April 16, 2020

The SMPS Foundation and Building Design+Construction are studying the impact of the coronavirus pandemic on the ability to attain and retain clients and conduct projects and Saks Fifth Avenue plans a sanitized post-coronavirus opening.

Market Data | Apr 15, 2020

5 must reads for the AEC industry today: April 15, 2020

Buildings as "open source platforms" and 3D printing finds its grove producing face shields.

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