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
Market Data | May 18, 2021
Grumman|Butkus Associates publishes 2020 edition of Hospital Benchmarking Survey
The report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | May 13, 2021
Proliferating materials price increases and supply chain disruptions squeeze contractors and threaten to undermine economic recovery
Producer price index data for April shows wide variety of materials with double-digit price increases.
Market Data | May 7, 2021
Construction employment stalls in April
Soaring costs, supply-chain challenges, and workforce shortages undermine industry's recovery.
Market Data | May 4, 2021
Nonresidential construction outlays drop in March for fourth-straight month
Weak demand, supply-chain woes make further declines likely.
Market Data | May 3, 2021
Nonresidential construction spending decreases 1.1% in March
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories.
Market Data | Apr 30, 2021
New York City market continues to lead the U.S. Construction Pipeline
New York City has the greatest number of projects under construction with 110 projects/19,457 rooms.
Market Data | Apr 29, 2021
U.S. Hotel Construction pipeline beings 2021 with 4,967 projects/622,218 rooms at Q1 close
Although hotel development may still be tepid in Q1, continued government support and the extension of programs has aided many businesses to get back on their feet as more and more are working to re-staff and re-open.
Market Data | Apr 28, 2021
Construction employment declines in 203 metro areas from March 2020 to March 2021
The decline occurs despite homebuilding boom and improving economy.
Market Data | Apr 20, 2021
The pandemic moves subs and vendors closer to technology
Consigli’s latest market outlook identifies building products that are high risk for future price increases.
Market Data | Apr 20, 2021
Demand for design services continues to rapidly escalate
AIA’s ABI score for March rose to 55.6 compared to 53.3 in February.