Construction employment increased in 245 out of 358 metro areas between March 2017 and March 2018, declined in 67 and stagnated in 46, according to a new analysis of federal employment data released today by the Associated General Contractors of America. Association officials said that the new figures come amid questions about how a possible trade war and long-term infrastructure funding shortfalls will impact the construction sector.
"While firms in many parts of the country continue to expand, there is a growing number of threats that could undermine future employment growth in the sector," said Stephen E. Sandherr, the association's chief executive officer. "Among the top threats to future construction growth are the risk of a trade war and long-term infrastructure funding challenges."
Houston-The Woodlands-Sugar Land, Texas added the most construction jobs during the past year (10,700 jobs, 5%), followed by Phoenix-Mesa-Scottsdale, Ariz. (9,500 jobs, 9%); Dallas-Plano-Irving, Texas (7,800 jobs, 6%) and Riverside-San Bernardino-Ontario, Calif. (7,200 jobs, 8%). The largest percentage gains occurred in the Weirton-Steubenville, W.Va.-Ohio metro area (29%, 400 jobs), followed by Merced, Calif. (26%, 600 jobs); Wenatchee, Wash. (26%, 600 jobs) and Midland, Texas (23%, 6,000 jobs).
The largest job losses from March 2017 to March 2018 were in Baton Rouge, La. (-3,200 jobs, -6%), followed by Columbia, S.C. (-2,200 jobs, -11%); Minneapolis-St. Paul-Bloomington, Minn.-Wisc. (-1,700 jobs, -2%); Newark, N.J.-Pa. (-1,700 jobs, -4%) and Montgomery County-Bucks County-Chester County, Pa. (-1,600 jobs, -3%). The largest percentage decreases for the year were in Auburn-Opelika, Ala. (-34%, -1,300 jobs), followed by Monroe, Mich. (-17%, -400 jobs); Portland-South Portland, Maine (-11%, -1,000 jobs) and Columbia, S.C. (-11%, -2,200 jobs).
Association officials said that trade disputes that could arise from the President's newly-imposed tariffs and long-term infrastructure funding shortfalls could threaten future construction employment growth. They noted that many construction firms have already experienced significant increases in what they pay for steel products. Meanwhile, long-term funding shortfalls for infrastructure improvements could undermine demand for many firms' services.
"The biggest threats to future construction growth are man-made: trade wars and funding shortfalls," said Stephen E. Sandherr, the association's chief executive officer. "Fortunately, Washington officials can help ensure future economic growth by avoiding a trade war and enacting long-term infrastructure funding."
View the metro employment data by rank and state. View metro employment map.
Related Stories
Market Data | Jul 5, 2023
Nonresidential construction spending decreased in May, its first drop in nearly a year
National nonresidential construction spending decreased 0.2% in May, 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 $1.06 trillion.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
| Jun 5, 2023
Communication is the key to AEC firms’ mental health programs and training
The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.
Contractors | May 24, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of April 2023
Contractor backlogs climbed slightly in April, from a seven-month low the previous month, according to Associated Builders and Contractors.
Multifamily Housing | May 23, 2023
One out of three office buildings in largest U.S. cities are suitable for residential conversion
Roughly one in three office buildings in the largest U.S. cities are well suited to be converted to multifamily residential properties, according to a study by global real estate firm Avison Young. Some 6,206 buildings across 10 U.S. cities present viable opportunities for conversion to residential use.
Industry Research | May 22, 2023
2023 High Growth Study shares tips for finding success in uncertain times
Lee Frederiksen, Managing Partner, Hinge, reveals key takeaways from the firm's recent High Growth study.
Multifamily Housing | May 8, 2023
The average multifamily rent was $1,709 in April 2023, up for the second straight month
Despite economic headwinds, the multifamily housing market continues to demonstrate resilience, according to a new Yardi Matrix report.