The construction industry lost 975,000 jobs on net in April, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. This was the largest recorded decrease in construction jobs since the government began tracking employment in 1939, despite construction remaining an essential industry in much of the nation through April.
Nonresidential construction employment lost 560,500 jobs on net in April. There were job losses in all three nonresidential segments, with the largest decline registered among nonresidential specialty trade contractors, which lost 393,100 jobs. Nonresidential building lost 88,500 jobs, while heavy and civil engineering lost 78,900 jobs.
The construction unemployment rate was 16.6% in April, up 11.9 percentage points from the same time last year. Unemployment across all industries rose from 4.4% in March to 14.7% last month. This was the highest rate since the BLS started tracking unemployment in 1948. Because of technical reasons related to the BLS survey and a classification error in several responses, the unemployment rate is probably closer to 20%.
“The hope had been that construction activity would hold up well given the industry’s classification as an essential industry in much of the nation and the presence of substantial backlog coming into the crisis, which stood at 8.2 months in February, according to ABC’s Construction Backlog Indicator,” said ABC Chief Economist Anirban Basu. “But alas, in large measure, those hopes were not realized. The level of construction industry job loss in April easily surpassed that of the worst month sustained during the Great Recession, when 155,000 jobs were lost in March 2009. Between April 2006 and January 2011, construction industry employment declined by 2.3 million. The construction industry lost nearly a million jobs last month alone.
“Based on a combination of business confidence indicators, initial unemployment claims and other emerging data, May will represent another month of crushing construction employment loss,” said Basu. “Project postponements and cancellations are now commonplace, with construction backlog failing to be the protective shield that it normally is during the early stages of economywide recession.”
Related Stories
Market Data | May 22, 2018
Vacancies stable, rents rising, and pipeline receding, according to Transwestern’s 1Q US Office Market report
The Big Apple still leads the new construction charge.
Market Data | May 18, 2018
Construction employment rises in 38 states and D.C. from April 2017 to April 2018
California & West Virginia have biggest annual job gains, North Dakota has largest decline; California & Louisiana have largest monthly pickup, Indiana & North Dakota lead monthly drops.
High-rise Construction | May 18, 2018
The 100 tallest buildings ever conventionally demolished
The list comes from a recent CTBUH study.
Resiliency | May 17, 2018
Architects brief lawmakers and policy-makers on disaster recovery as hurricane season approaches
Urge senate passage of disaster recovery reform act; Relationship-building with local communities.
Market Data | May 17, 2018
These 25 cities have the highest urban infill development potential
The results stem from a COMMERCIALCafé study.
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.