August construction employment lags pre-pandemic peak in 39 states

Construction employment in August remained below the levels reached before the pre-pandemic peak in February 2020 in 39 states, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials urged the House of Representatives to quickly pass the bipartisan infrastructure bill to avoid further cutbacks in construction activity and jobs.

“Construction employment slipped or stagnated from July to August in half the states as the delta variant of COVID-19 affected workers and caused some owners to delay projects,” said Ken Simonson, the association’s chief economist. “In addition, more than half of the respondents in our latest workforce survey reported experiencing projects that have been canceled, postponed, or scaled back.”

From February 2020—the month before the pandemic caused project shutdowns and cancellations—to last month, construction employment increased in only 11 states and the District of Columbia. Texas shed the most construction jobs over the period (-56,700 jobs or -7.3%), followed by New York (-50,700 jobs, -12.4%) and California (-34,900 jobs, -3.8%). Wyoming recorded the largest percentage loss (-16.6%, -3,800 jobs), followed by Louisiana (-14.4%, -19,700 jobs) and New York.

Utah added the most construction jobs since February 2020 (7,400 jobs, 6.5%), followed by North Carolina (4,500, 1.9%), Idaho (3,700 jobs, 6.7%), and South Carolina (3,700 jobs, 3.5%). The largest percentage gains were in South Dakota (7.1%, 1,700 jobs), followed by Idaho and Utah.

From July to August construction employment decreased in 22 states, increased in 25 states and D.C., and was unchanged in three states. The largest decline over the month occurred in Kansas, which lost 2,400 construction jobs or 3.7%. Georgia lost the second-most jobs (-2,300 jobs, -1.1%). The second-largest percentage decline since July, -2.1%, occurred in Alabama (-1,900 jobs) and Wyoming (-400 jobs).

Nevada added the most construction jobs between July and August (3,000 jobs, 3.3%), followed by New York (2,600 jobs, 0.7%) and Tennessee (2,600 jobs, 2.0%). New Hampshire had the largest percentage gain (4.4%, 1,200 jobs), followed by Nevada and Oklahoma (2.3%, 1,800 jobs).

Association officials warned that construction employment was being impacted in many parts of the country because of supply chain challenges and growing market uncertainty caused by the resurgent Delta variant. They said new federal infrastructure investments would provide a needed boost in demand and help put more people to work in construction careers.

“It is vital that Congress complete work on the bipartisan infrastructure bill before the end of month,” said Stephen E. Sandherr, the association’s chief executive officer. “Otherwise, funding will stop for much-needed highway and other public works projects and many more construction workers will lose their jobs.”

View state February 2020-August 2021 data and rankings, 1-month rankings. View AGC’s survey results.

Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.

Industry Research | Jun 15, 2023

Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield

Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.

Contractors | Jun 13, 2023

The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023

Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.

Supply-chain snags are among the factors delaying construction.

Industry Research | Jun 13, 2023

Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility

The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.

Skanska USA's mental health trainees are identified by a Green Sticker

| Jun 5, 2023

Communication is the key to AEC firms’ mental health programs and training

The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.

Contractors | May 24, 2023

The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023

Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.

Multifamily Housing | May 23, 2023

One out of three office buildings in largest U.S. cities are suitable for residential conversion

Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.