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 | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.
Market Data | Sep 22, 2016
Architecture Billings Index slips, overall outlook remains positive
Business conditions are slumping in the Northeast.
Market Data | Sep 20, 2016
Backlog skyrockets for largest firms during second quarter, but falls to 8.5 months overall
While a handful of commercial construction segments continue to be associated with expanding volumes, for the most part, the average contractor is no longer getting busier, says ABC Chief Economist Anirban Basu.
Designers | Sep 13, 2016
5 trends propelling a new era of food halls
Food halls have not only become an economical solution for restauranteurs and chefs experiencing skyrocketing retail prices and rents in large cities, but they also tap into our increased interest in gourmet locally sourced food, writes Gensler's Toshi Kasai.