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 | May 2, 2018
Construction employment increases in 245 metro areas between March 2017 & 2018, as trade fights & infrastructure funding shortfalls loom
Houston-The Woodlands-Sugar Land, Texas and Weirton-Steubenville, W.Va.-Ohio experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines.
Market Data | May 2, 2018
Nonresidential Construction down in March, private sector falters, public sector unchanged
February’s spending estimate was revised roughly $10 billion higher.
Market Data | Apr 30, 2018
Outlook mixed for renewable energy installations in Middle East and Africa region
Several major MEA countries are actively supporting the growth of renewable energy.
Market Data | Apr 12, 2018
Construction costs climb in March as wide range of input costs jump
Association officials urge Trump administration, congress to fund infrastructure adequately as better way to stimulate demand than tariffs that impose steep costs on contractors and project owners.
Market Data | Apr 9, 2018
Construction employers add 228,000 jobs over the year despite dip in March
Average hourly earnings increase to $29.43 in construction, topping private sector by nearly 10%; Association officials urge updating and better funding programs to train workers for construction jobs.
Market Data | Apr 4, 2018
Construction employment increases in 257 metro areas between February 2017 & 2018 as construction firms continue to expand amid strong demand
Riverside-San Bernardino-Ontario, Calif. and Merced, Calif. experience largest year-over-year gains; Baton Rouge, La. and Auburn-Opelika, Ala. have biggest annual declines in construction employment.
Market Data | Apr 2, 2018
Construction spending in February inches up from January
Association officials urge federal, state and local officials to work quickly to put recently enacted funding increases to work to improve aging and over-burdened infrastructure, offset public-sector spending drops.
Market Data | Mar 29, 2018
AIA and the University of Minnesota partner to develop Guides for Equitable Practice
The Guides for Equitable Practice will be developed and implemented in three phase.
Market Data | Mar 22, 2018
Architecture billings continue to hold positive in 2018
Billings particularly strong at firms in the West and Midwest regions.
Market Data | Mar 21, 2018
Construction employment increases in 248 metro areas as new metal tariffs threaten future sector job gains
Riverside-San Bernardino-Ontario, Calif., and Merced, Calif., experience largest year-over-year gains; Baton Rouge, La., and Auburn-Opelika, Ala., have biggest annual declines in construction employment.
