flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction sector adds 84,000 workers in October

Market Data

Construction sector adds 84,000 workers in October

A growing number of project cancellations risks undermining future industry job gains.


By AGC | November 9, 2020

Courtesy Pixabay

Construction employment increased by 84,000 jobs in October, with jobs added in both nonresidential and residential categories, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned, however, that the pandemic is causing a growing number of construction projects to be canceled or delayed, according to a survey the association released in late October.

“The employment data for October is good news, but our latest survey found that only a minority of contractors expect to add to their workforce in the next 12 months,” said Ken Simonson, the association’s chief economist. “As project cancellations mount, so too will job losses on the nonresidential side unless the federal government provides funding for infrastructure and relief for contractors.”

Construction employment climbed to 7,345,000 in October, an increase of 1.2% compared to September. However, employment in the sector is down by 294,000 or 3.9% since the most recent peak in February, just before the pandemic triggered widespread project cancellations. Despite the employment pickup in October, nonresidential construction employment—comprising nonresidential building, specialty trades, and heavy and civil engineering construction—remains 262,000 jobs or 5.6% below its recent peak in February, Simonson noted.

The construction economist added that residential construction, covering residential building and specialty trade contractors, has had a stronger recovery, with employment down by just 32,000 jobs or 1.1% since February. The industry’s unemployment rate in October was 6.8%, with 674,000 former construction workers idled. These figures were the lowest since the pandemic struck but considerably higher than the October 2019 figures of 4.0% and 398,000 workers, respectively, the economist added.

In the association’s October survey, which covered more than 1,000 contractors that perform all types of nonresidential and multifamily construction, three out of four respondents reported that a scheduled project had been postponed or canceled. Only 37% of respondents expect their headcount to increase over the next 12 months. That was a sharp drop from the 75% who predicted an increase in the association’s annual Hiring and Business Outlook Survey released last December.

Association officials said they were encouraged by reports that Congress plans to consider new coronavirus relief measures before the end of the year. They noted that new measures, including investments in infrastructure, new Paycheck Protection Program flexibility and tax relief, and liability reforms will help offset the impacts of the growing number of project cancellations and delays.

“Congressional leaders understand that employers cannot afford to wait until next year for relief from the broad economic impacts of the coronavirus pandemic,” said Stephen E. Sandherr, the association’s chief executive officer. “We stand ready to work with Congress to make sure any new relief measures include new infrastructure investments, tax relief and liability reform so honest firms don’t fall victim to predatory lawyers seeking to profit from the coronavirus.”

Related Stories

MFPRO+ Research | Oct 15, 2024

Multifamily rents drop in September 2024

The average multifamily rent fell by $3 in September to $1,750, while year-over-year growth was unchanged at 0.9 percent.

Contractors | Oct 1, 2024

Nonresidential construction spending rises slightly in August 2024

National nonresidential construction spending increased 0.1% in August, 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 $1.22 trillion.

The Changing Built Environment | Sep 23, 2024

Half-century real estate data shows top cities for multifamily housing, self-storage, and more

Research platform StorageCafe has conducted an analysis of U.S. real estate activity from 1980 to 2023, focusing on six major sectors: single-family, multifamily, industrial, office, retail, and self-storage.

Student Housing | Sep 17, 2024

Student housing market stays strong in summer 2024

As the summer season winds down, student housing performance remains strong. Preleasing for Yardi 200 schools rose to 89.2% in July 2024, falling just slightly behind the same period last year.

MFPRO+ Research | Sep 11, 2024

Multifamily rents fall for first time in 6 months

Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741.

Contractors | Sep 10, 2024

The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of August 2024

Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted Aug. 20 to Sept. 5. The reading is down 1.0 months from August 2023.

Construction Costs | Sep 2, 2024

Construction material decreases level out, but some increases are expected to continue for the balance Q3 2024

The Q3 2024 Quarterly Construction Insights Report from Gordian examines the numerous variables that influence material pricing, including geography, global events and commodity volatility. Gordian and subject matter experts examine fluctuations in costs, their likely causes, and offer predictions about where pricing is likely to go from here. Here is a sampling of the report’s contents.

Contractors | Aug 21, 2024

The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of July 2024

Associated Builders and Contractors reported today that its Construction Backlog Indicator held steady at 8.4 months in July, according to an ABC member survey conducted July 22 to Aug. 6. The reading is down 0.9 months from July 2023.

MFPRO+ Research | Aug 9, 2024

Apartment completions to surpass 500,000 for first time ever

While the U.S. continues to maintain a steady pace of delivering new apartments, this year will be one for the record books.

Contractors | Aug 1, 2024

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, 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 $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021