Construction employment decreased from February 2020 – the last month prior to the pandemic – to April 2021 in 107, or 30%, of the nation’s metro areas, and was stagnant in another 34, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that construction employment in many parts of the country was being undermined by pandemic-induced project delays, materials price spikes and shortages, and difficulties finding labor.
“It is disturbing to see that nearly one-third of the nation’s metro areas had lower construction employment totals in the mild weather and strongly rebounding economy of April 2021 than in the winter of 2020,” said Ken Simonson, the association’s chief economist. “Ever-growing supply-chain bottlenecks and record prices for numerous construction materials threaten to further chill demand for job gains in many metros.”
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 14-month period (-29,300 jobs, -12%), followed by New York City (-22,300 jobs, -14%); Midland, Texas (-9,800 jobs, -26%); Odessa, Texas (-8,000 jobs, -39%); and Lake Charles, La. (7,200 jobs, -36%). Odessa had the largest percentage decline, followed by Lake Charles; Midland; Laredo, Texas (-23%, -7,200 jobs) and Longview, Texas (-23%, -3,400 jobs).
Construction employment was stagnant in 34 additional metro areas, while 217 metro areas—61%—added construction jobs over the pre-pandemic (February 2020) level. Indianapolis-Carmel-Anderson, Ind. added the most construction jobs over 14 months (7,900 jobs, 15%), followed by Chicago-Naperville-Arlington Heights, Ill. (6,300 jobs, 5%); Seattle-Bellevue-Everett, Wash. (6,200 jobs, 6%); Minneapolis-St. Paul-Bloomington, Minn.-Wis. (5,900 jobs, 8%); and Sacramento--Roseville--Arden-
Sierra Vista-Douglas, Ariz. had the highest percentage increase (44%, 1,100 jobs), followed by Fargo, N.D.-Minn. (34%, 2,500 jobs); Lawrence-Methuen Town Salem, Mass-N.H. (29%, 1,000 jobs); Bay City, Mich. (27%, 300 jobs) and Taunton-Middleborough-Norton, Mass. (22%, 700 jobs).
Association officials called on the Biden administration to take steps to address rising materials prices and growing labor shortages. These steps include removing tariffs on key construction materials like steel, lumber and aluminum. And they include ending unemployment insurance supplements that are providing incentives for qualified workers to stay off payrolls for now.
“Washington has put in place a number of artificial barriers that are holding back the construction industry’s recovery,” said Stephen E. Sandherr, the association’s chief executive officer. “Washington’s tariffs are making materials more expensive while its unemployment supplements are making workers more hesitant to return to payrolls.”
View the metro employment 14-month data, rankings, top 10, multi-division metros, and map.
Related Stories
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, 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 $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
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.
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.
| 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.
Industry Research | May 22, 2023
2023 High Growth Study shares tips for finding success in uncertain times
Lee Frederiksen, Managing Partner, Hinge, reveals key takeaways from the firm's recent High Growth study.
Multifamily Housing | May 8, 2023
The average multifamily rent was $1,709 in April 2023, up for the second straight month
Despite economic headwinds, the multifamily housing market continues to demonstrate resilience, according to a new Yardi Matrix report.
