Construction employment decreased from December 2019 to December 2020 in more than half of the nation’s metro areas despite a surge in homebuilding and remodeling, 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 that began before the pandemic because private owners and public agencies are hesitant to commit to new construction.
“A dearth of new construction work is forcing more and more contractors to lay off employees once they complete projects started before the pandemic hit in early 2020,” said Ken Simonson, the association’s chief economist. “Private nonresidential construction spending tumbled 10% from December 2019 to December 2020 and public work has been slowing since last March, according to recent Census Bureau data.”
Construction employment fell in 191, or 53%, of 358 metro areas in 2020. Construction employment was stagnant in 33 additional metro areas, while only 134 metro areas—37%—added construction jobs between December 2019 and December 2020.
Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs in 2020 (-24,500 jobs, -10%), followed by New York City (-19,100 jobs, -12%); Midland, Texas (-9,200 jobs, -23%); Montgomery-Bucks-Chester counties, Pa. (-9,100 jobs, -17%); and Denver-Aurora-Lakewood, Colo. (-6,900 jobs, -6%). Brockton-Bridgewater-Easton, Mass. had the largest percentage decline (-40%, -2,100 jobs), followed by Altoona, Pa. (-34%, -1,000 jobs); Bloomsburg-Berwick, Pa. (-33%, -400 jobs); Johnstown, Pa. (-29%, -700 jobs); and East Stroudsburg, Pa. (-26%, -500 jobs).
Indianapolis-Carmel-Anderson, Ind. added the most construction jobs over the year (5,600 jobs, 10%), followed by Northern Virginia (5,300 jobs, 7%); Seattle-Bellevue-Everett, Wash. (4,900 jobs, 5%); Baltimore-Columbia-Towson, Md. (4,800 jobs, 6%); and Kansas City, Mo. (3,300 jobs, 11%). Walla Walla, Wash. had the highest percentage increase (17%, 200 jobs), followed by Fond du Lac, Wisc. (16%, 500 jobs); Springfield, Mo. (15%, 1,400 jobs); and Dutchess-Putnam counties, N.Y.
(15%, 1,300 jobs).
Association officials said job losses are likely to widen as demand for non-residential construction suffers and state and local budget challenges undermine demand for public projects. They urged Washington officials to begin work on recovery measures to fund infrastructure and shore up local construction budgets. They added that the work on these new investments should start even as negotiations on a coronavirus relief package continue.
“Helping people now is important but planning to rebuild our economy is essential to recovering from the economic pain of the pandemic,” said Stephen E. Sandherr, the association’s chief executive officer. “It is not enough to just want a better economy; you have to build it.”
View the metro employment 12-month data, rankings, top 10, new highs and lows, map.
Related Stories
Retail Centers | Apr 4, 2024
Retail design trends: Consumers are looking for wellness in where they shop
Consumers are making lifestyle choices with wellness in mind, which ignites in them a feeling of purpose and a sense of motivation. That’s the conclusion that the architecture and design firm MG2 draws from a survey of 1,182 U.S. adult consumers the firm conducted last December about retail design and what consumers want in healthier shopping experiences.
Market Data | Apr 1, 2024
Nonresidential construction spending dips 1.0% in February, reaches $1.179 trillion
National nonresidential construction spending declined 1.0% in February, 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 $1.179 trillion.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
K-12 Schools | Mar 18, 2024
New study shows connections between K-12 school modernizations, improved test scores, graduation rates
Conducted by Drexel University in conjunction with Perkins Eastman, the research study reveals K-12 school modernizations significantly impact key educational indicators, including test scores, graduation rates, and enrollment over time.
MFPRO+ News | Mar 16, 2024
Multifamily rents stable heading into spring 2024
National asking multifamily rents posted their first increase in over seven months in February. The average U.S. asking rent rose $1 to $1,713 in February 2024, up 0.6% year-over-year.
Market Data | Mar 14, 2024
Download BD+C's March 2024 Market Intelligence Report
U.S. construction spending on buildings-related work rose 1.4% in January, but project teams continue to face headwinds related to inflation, interest rates, and supply chain issues, according to Building Design+Construction's March 2024 Market Intelligence Report (free PDF download).
Contractors | Mar 12, 2024
The average U.S. contractor has 8.1 months worth of construction work in the pipeline, as of February 2024
Associated Builders and Contractors reported that its Construction Backlog Indicator declined to 8.1 months in February, according to an ABC member survey conducted Feb. 20 to March 5. The reading is down 1.1 months from February 2023.
Market Data | Mar 6, 2024
Nonresidential construction spending slips 0.4% in January
National nonresidential construction spending decreased 0.4% in January, 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 $1.190 trillion.
Multifamily Housing | Mar 4, 2024
Single-family rentals continue to grow in BTR communities
Single-family rentals are continuing to grow in built-to-rent communities. Both rent and occupancy growth have been strong in recent months while remaining a financially viable option for renters.
MFPRO+ News | Mar 2, 2024
Job gains boost Yardi Matrix National Rent Forecast for 2024
Multifamily asking rents broke the five-month streak of sequential average declines in January, rising 0.07 percent, shows a new special report from Yardi Matrix.
