Construction employment in June remained below the levels reached before the pre-pandemic peak in February 2020 in 39 states, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials noted that many construction firms are struggling to cope with supply chain challenges and rising materials prices, which is undermining demand for new projects and impacting firms’ ability to hire new workers.
“The construction industry is a long way from full recovery in most states, in spite of a hot homebuilding market in many areas,” said Ken Simonson, the association’s chief economist. “Soaring materials costs, long production times for key items, and delayed deliveries are causing owners to postpone projects.”
From February 2020—the month before the pandemic caused project shutdowns and cancellations—to last month, construction employment increased in only 11 states and was flat in the District of Columbia. New York shed the most construction jobs over the period (-54,300 jobs or -13.3%), followed by Texas (-54,100 jobs, -6.9%) and California (-36,500 jobs, -4.0%). Wyoming recorded the largest percentage loss (-15.3%, -3,500 jobs), followed by Louisiana (-15.1%, -20,700 jobs) and New York.
Of the states that added construction jobs since February 2020, Utah added the most (7,000 jobs, 6.1%), followed by Idaho (4,400 jobs, 8.0%), South Dakota (1,400 jobs, 5.9%) and Rhode Island (1,200 jobs, 5.9%). The largest percentage gain was in Idaho, followed by Utah, Rhode Island, and South Dakota.
From May to June construction employment decreased in 25 states, increased in 24 states and D.C., and held steady in Maine. The largest decline over the month occurred in New York, which lost 6,900 construction jobs or 1.9%, followed by Pennsylvania (-4,100 jobs, -1.6%) and Texas (-3,300 jobs, -1.3%). The steepest percentage declines since May occurred in Vermont (-3.5%, -500 jobs), followed by New York, Alabama (-1.9%, -1,700 jobs), and North Dakota (-1.9%, -500 jobs).
Georgia added the most construction jobs between May and June (5,700 jobs, 2.9%), followed by Kentucky (2,700 jobs, 3.4%) and Florida (2,500 jobs, 0.4%). Kentucky had the largest percentage gain for the month, followed by Alaska (3.0%, 500 jobs) and Georgia.
Association officials cautioned that construction employment is unlikely to grow in many parts of the country until many of the supply chain challenges impacting firms improve. They added that the President could help by removing tariffs on key construction materials. They added that ending the unemployment supplements would add to the pool of workers for manufacturers, shippers, and construction firms to hire.
“Easing tariffs will help, but what the construction supply chain needs are workers to manufacture the products, ship them to contractors and build the projects the economy demands,” said Stephen E. Sandherr, the association’s chief executive officer. “Unemployment supplements helped families survive the pandemic-related lock downs, but they are undermining the post-pandemic recovery.”
View state February 2020-June 2021 data, 16-month rankings, 1-month rankings, and map.
Related Stories
Senior Living Design | May 9, 2017
Designing for a future of limited mobility
There is an accessibility challenge facing the U.S. An estimated 1 in 5 people will be aged 65 or older by 2040.
Industry Research | May 4, 2017
How your AEC firm can go from the shortlist to winning new business
Here are four key lessons to help you close more business.
Engineers | May 3, 2017
At first buoyed by Trump election, U.S. engineers now less optimistic about markets, new survey shows
The first quarter 2017 (Q1/17) of ACEC’s Engineering Business Index (EBI) dipped slightly (0.5 points) to 66.0.
Market Data | May 2, 2017
Nonresidential Spending loses steam after strong start to year
Spending in the segment totaled $708.6 billion on a seasonally adjusted, annualized basis.
Market Data | May 1, 2017
Nonresidential Fixed Investment surges despite sluggish economic in first quarter
Real gross domestic product (GDP) expanded 0.7 percent on a seasonally adjusted annualized rate during the first three months of the year.
Industry Research | Apr 28, 2017
A/E Industry lacks planning, but still spending large on hiring
The average 200-person A/E Firm is spending $200,000 on hiring, and not budgeting at all.
Market Data | Apr 19, 2017
Architecture Billings Index continues to strengthen
Balanced growth results in billings gains in all regions.
Market Data | Apr 13, 2017
2016’s top 10 states for commercial development
Three new states creep into the top 10 while first and second place remain unchanged.
Market Data | Apr 6, 2017
Architecture marketing: 5 tools to measure success
We’ve identified five architecture marketing tools that will help your firm evaluate if it’s on the track to more leads, higher growth, and broader brand visibility.
Market Data | Apr 3, 2017
Public nonresidential construction spending rebounds; overall spending unchanged in February
The segment totaled $701.9 billion on a seasonally adjusted annualized rate for the month, marking the seventh consecutive month in which nonresidential spending sat above the $700 billion threshold.
