Construction employment in February remained below pre-pandemic levels in all but six states, according to an analysis by the Associated General Contractors of America of government employment data released today, while soaring materials costs and supply-chain problems threaten future employment. The association issued a Construction Inflation Alert detailing the problems and urged a rollback of tariffs and other supply impediments.
“Today’s figures show most states are still far from recovering the construction jobs lost a year ago,” said Ken Simonson, the association’s chief economist. “The overall economy is recovering, but huge price spikes and ever-lengthening delivery times threaten to set construction back further.”
The association’s new inflation alert documents a wide variety of materials undergoing steep and frequent price increases and delivery delays, Simonson noted. This combination threatens to hold up the start or completion of numerous projects and add to the downward pressure on construction employment, the economist warned.
Seasonally adjusted construction employment in February 2021 was lower than in February 2020—the last month before the pandemic forced many contractors to suspend work—in 44 states and the District of Columbia. Texas lost the most construction jobs over the period (-56,400 jobs or -7.2%), followed by New York (-41,100 jobs, -10.1%), California (-35,000 jobs, -3.8%), Louisiana (-20,400 jobs, -14.9%), and New Jersey (-18,200 jobs, -11.1%). Louisiana experienced the largest percentage loss, followed by Wyoming (-14.0%, -3,200 jobs), New Jersey, New York, and West Virginia (-9.3%, -3,100 jobs).
Only six states added construction jobs from February 2020 to February 2021. Utah added the most jobs (6,700 jobs, 5.9%), trailed by Idaho (4,500 jobs, 8.2%) and Arkansas (900 jobs, 1.7%). Idaho added the highest percentage, followed by Utah and Arkansas.
From January to February, 35 states lost construction jobs, 11 states added jobs, and there was no change in D.C., Idaho, Oregon, Rhode Island, and Vermont. New York had the largest loss of construction jobs for the month (-15,600 jobs or -4.1%), followed by Indiana (-6,100 jobs, -4.1%), Illinois (-5,600 jobs, -2.6%), and Iowa (-5,500 jobs, -6.9%). Iowa had the largest percentage decline, followed by Kansas (-4.9%, -3,100 jobs), New York, and Indiana. Utah added the most construction jobs and the highest percentage over the month (3,000 jobs, 2.5%), followed by South Carolina (2,200 jobs, 2.1%).
Association officials called on the Biden administration to roll back tariffs on a range of key construction materials, including lumber and steel, that are contributing to the price spikes. They also urged the administration and Congress to work together to find ways to ease shipping delays that are undermining established supply chains. This could include providing temporary hours-of-service relief and looking at ways to expand port capacity.
“The coronavirus has wreaked havoc on many supply chains, but some of the price increases are the result of misguided policy decisions, including tariffs,” said Stephen E. Sandherr, the association’s chief executive officer. “Cutting tariffs and addressing shipping delays will give a needed boost to many firms struggling to get back to pre-pandemic business and employment levels.”
View state February 2020-February 2021 data and rankings and January-February rankings. View AGC’s Inflation Alert.
Related Stories
Market Data | Oct 2, 2019
Spending on nonresidential construction takes a step back in August
Office, healthcare, and public safety are among the fastest-growing sectors, according to the U.S. Census Bureau's latest report.
Market Data | Sep 27, 2019
The global hotel construction pipeline ascends to new record highs
With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown.
Market Data | Sep 25, 2019
Senate introduces The School Safety Clearinghouse Act
Legislation would create a federally funded and housed informational resource on safer school designs.
Market Data | Sep 18, 2019
Substantial decline in Architecture Billings
August report suggests greatest weakness in design activity in several years.
Market Data | Sep 17, 2019
ABC’s Construction Backlog Indicator inches lower in July
Backlog in the heavy industrial category increased by 2.3 months and now stands at its highest level in the history of the CBI series.
Market Data | Sep 13, 2019
Spending on megaprojects, already on the rise, could spike hard in the coming years
A new FMI report anticipates that megaprojects will account for one-fifth of annual construction spending within the next decade.
Architects | Sep 11, 2019
Buoyed by construction activity, architect compensation continues to see healthy gains
The latest AIA report breaks down its survey data by 44 positions and 28 metros.
Market Data | Sep 11, 2019
New 2030 Commitment report findings emphasize need for climate action
Profession must double down on efforts to meet 2030 targets.
Market Data | Sep 10, 2019
Apartment buildings and their residents contribute $3.4 trillion to the national economy
New data show how different aspects of the apartment industry positively impact national, state and local economies.
Market Data | Sep 3, 2019
Nonresidential construction spending slips in July 2019, but still surpasses $776 billion
Construction spending declined 0.3% in July, totaling $776 billion on a seasonally adjusted annualized basis.
