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
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.
Industry Research | Oct 25, 2016
New HOK/CoreNet Global report explores impact of coworking on corporate real rstate
“Although coworking space makes up less than one percent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility,” says Kay Sargent, Director of WorkPlace at HOK.
Market Data | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.
