Only 34% of the nation’s metro areas—just over one-third—added construction jobs from November 2019 to November 2020, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials said large numbers of contractors are having to lay off workers once they complete projects begun before the pandemic because private owners and public agencies are hesitant to commit to new construction.
“Canceled and postponed projects appear to be more common than new starts for far too many contractors,” said Ken Simonson, the association’s chief economist. “Our association’s 2021 Construction Hiring and Business Outlook Survey found three times more contractors have experienced postponements and cancellations than new or expanded projects.”
Construction employment fell in 203, or 57%, of 358 metro areas between November 2019 and November 2020. Construction employment was stagnant in 33 additional metro areas, while only 122 metro areas—34%—added construction jobs during the past year.
Houston-The Woodlands-Sugar Land, Texas lost the most construction jobs over that span (-22,500 jobs, -9%), followed by New York City (-16,700 jobs, -11%); Midland, Texas (-9,800 jobs, -25%); Montgomery-Bucks-Chester counties, Pa. (-8,800 jobs, -16%); and Oakland-Hayward-Berkeley, Calif. (-8,400 jobs, -11%). Brockton-Bridgewater-Easton, Mass. had the largest percentage decline (-40%, -2,200 jobs), followed by Altoona, Pa. (-35%, -1,100 jobs); Bloomsburg-Berwick, Pa. (-31%, -400 jobs); Johnstown, Pa. (-31%, -800 jobs); and East Stroudsburg, Pa. (-30%, -600 jobs).
Phoenix-Mesa-Scottsdale, Ariz. added the most construction jobs over the year (4,700 jobs, 3%), followed by Baltimore-Columbia-Towson, Md. (4,500 jobs, 5%); Boise, Idaho (4,300 jobs, 16%); Dallas-Plano-Irving, Texas (3,700 jobs, 2%); and Seattle-Bellevue-Everett, Wash. (3,600 jobs, 3%). Walla Walla, Wash. had the highest percentage increase (17%, 200 jobs), followed by Boise; Oshkosh-Neenah, Wisc. (16%, 900 jobs); and Springfield, Mo. (16%, 1,500 jobs).
Association officials said many metro areas were likely to lose more construction jobs amid declining demand and continued project cancellations and delays. They added that a clearer picture of what is in store for the industry will emerge on Thursday, January 7, when the association releases the 2021 Construction Hiring and Business Outlook it prepared with Sage.
“Construction employment is likely to fall further in many parts of the country as the coronavirus continues to weigh on demand for nonresidential projects,” said Stephen E. Sandherr, the association’s chief executive officer. “Unless market conditions change rapidly, this year is likely to prove very challenging for many construction employers.”
View the metro employment 12-month data, rankings, top 10, new highs and lows, map.
Related Stories
Market Data | Oct 2, 2019
Spending on nonresidential construction takes a step back in August
Office, healthcare, and public safety are among the fastest-growing sectors, according to the U.S. Census Bureau's latest report.Â
Market Data | Sep 27, 2019
The global hotel construction pipeline ascends to new record highs
With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown.
Market Data | Sep 25, 2019
Senate introduces The School Safety Clearinghouse Act
Legislation would create a federally funded and housed informational resource on safer school designs.
Market Data | Sep 18, 2019
Substantial decline in Architecture Billings
August report suggests greatest weakness in design activity in several years.
Market Data | Sep 17, 2019
ABC’s Construction Backlog Indicator inches lower in July
Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series.
Market Data | Sep 13, 2019
Spending on megaprojects, already on the rise, could spike hard in the coming years
A new FMI report anticipates that megaprojects will account for one-fifth of annual construction spending within the next decade.
Architects | Sep 11, 2019
Buoyed by construction activity, architect compensation continues to see healthy gains
The latest AIA report breaks down its survey data by 44 positions and 28 metros.
Market Data | Sep 11, 2019
New 2030 Commitment report findings emphasize need for climate action
Profession must double down on efforts to meet 2030 targets.
Market Data | Sep 10, 2019
Apartment buildings and their residents contribute $3.4 trillion to the national economy
New data show how different aspects of the apartment industry positively impact national, state and local economies.
Market Data | Sep 3, 2019
Nonresidential construction spending slips in July 2019, but still surpasses $776 billion
Construction spending declined 0.3% in July, totaling $776 billion on a seasonally adjusted annualized basis.
