Construction employment in April remained below the pre-pandemic high set in February 2020 in 36 states and the District of Columbia, despite increases from March to April in 26 states, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials said that the sector’s recovery was being undermined by increases in materials prices, delays in receiving key construction supplies and labor shortages.
“Today’s numbers show that construction has yet to fully recover from the effects of the pandemic in most parts of the country,” said Ken Simonson, the association’s chief economist. “Even where employment has topped pre-pandemic levels, the gains are likely due mainly to feverish homebuilding and remodeling, not to widespread resumption of nonresidential building and infrastructure projects.”
Seasonally adjusted construction employment in April exceeded the February 2020 level in only 14 states. Utah added the most jobs (5,100 jobs or 4.5%), trailed by Idaho (4,400 jobs, 8.0%), Washington (3,800 jobs, 1.7%), and South Carolina (1,900 jobs, 1.8%). Idaho added the highest percentage, followed by South Dakota (6.3%, 1,500 jobs), Utah, and Rhode Island (3.5%, 700 jobs).
Employment declined from the February 2020 level in 36 states and D.C. Texas lost the most construction jobs over the period (-44,800 jobs or -5.7%), followed by New York (-29,300 jobs, -9.1%), California (-27,600 jobs, -3.0%), Louisiana (-19,600 jobs, -14.3%), and New Jersey (-15,600 jobs, -9.5%). Louisiana recorded the largest percentage loss, followed by Wyoming (-13.5%, -3,100 jobs), New Jersey, New York, and West Virginia (-8.7%, -2,900 jobs).
For the month, construction employment increased in 26 states, decreased in 21, and held steady in three states and D.C. Illinois added the most construction jobs (4,000 jobs, 1.8%), followed by Pennsylvania (3,400 jobs, 1.4%), Wisconsin (2,900 jobs, 2.4%), Kentucky (1,900 jobs, 2.4%) and North Carolina (1,600 jobs, 0.7%). New Hampshire had the largest percentage gain (3.2%, 900 jobs), followed by Rhode Island (2.4%, 500 jobs), Kentucky, and Wisconsin. Texas lost the most construction jobs for the month (-13,600 jobs, -1.8%), followed by New York, (-3,900 jobs, -1.0%) and Iowa (-3,100 jobs, -3.9%). Iowa had the largest percentage loss, followed by Alabama (-2.4%, -2,200 jobs), and Texas.
Association officials noted that rapid increases in the cost of many construction materials are hammering firms still trying to recover from the pandemic. Deliveries of many materials are often delayed because of manufacturing and shipping backups. In addition, many firms report having trouble finding workers to hire amid continued school closures, lingering worries about the pandemic and elevated unemployment benefits.
“Federal officials can give the industry a needed boost by removing tariffs on key construction materials such as lumber, steel, and aluminum, and taking steps to ease supply-chain backups,” said Stephen E. Sandherr, the association’s chief executive officer. “It is also time to end barriers keeping workers home, including reopening schools and ending the unemployment supplements.”
View state February 2020-April 2021 data, 12-month rankings, 1-month rankings and map.
Related Stories
Hotel Facilities | Jul 28, 2022
As travel returns, U.S. hotel construction pipeline growth follows
According to the recently released United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. construction pipeline stands at 5,220 projects/621,268 rooms at the close of 2022’s second quarter, up 9% Year-Over-Year (YOY) by projects and 4% YOY by rooms.
Codes and Standards | Jul 22, 2022
Hurricane-resistant construction may be greatly undervalued
New research led by an MIT graduate student at the school’s Concrete Sustainability Hub suggests that the value of buildings constructed to resist wind damage in hurricanes may be significantly underestimated.
Market Data | Jul 21, 2022
Architecture Billings Index continues to stabilize but remains healthy
Architecture firms reported increasing demand for design services in June, according to a new report today from The American Institute of Architects (AIA).
Market Data | Jul 21, 2022
Despite deteriorating economic conditions, nonresidential construction spending projected to increase through 2023
Construction spending on buildings is projected to increase just over nine percent this year and another six percent in 2023, according to a new report from the American Institute of Architects (AIA).
Building Team | Jul 18, 2022
Understanding the growing design-build market
FMI’s new analysis of the design-build market forecast for the next fives years shows that this delivery method will continue to grow, despite challenges from the COVID-19 pandemic.
Market Data | Jul 1, 2022
Nonresidential construction spending slightly dips in May, says ABC
National nonresidential construction spending was down by 0.6% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau.
Market Data | Jun 30, 2022
Yardi Matrix releases new national rent growth forecast
Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021.
Market Data | Jun 22, 2022
Architecture Billings Index slows but remains strong
Architecture firms reported increasing demand for design services in May, according to a new report today from The American Institute of Architects (AIA).
Building Team | Jun 17, 2022
Data analytics in design and construction: from confusion to clarity and the data-driven future
Data helps virtual design and construction (VDC) teams predict project risks and navigate change, which is especially vital in today’s fluctuating construction environment.
Market Data | Jun 15, 2022
ABC’s construction backlog rises in May; contractor confidence falters
Associated Builders and Contractors reports today that its Construction Backlog Indicator increased to nine months in May from 8.8 months in April, according to an ABC member survey conducted May 17 to June 3. The reading is up one month from May 2021.
