Only 30% of the nation’s metro areas added construction jobs in the past year, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials said construction employment in most parts of the country was being impacted by pandemic as businesses and local governments curtail planned construction projects.
“The pandemic has devastated the finances for businesses, institutions, and state and local governments, leading to widespread postponements and cancellations of construction projects,” said Ken Simonson, the association’s chief economist. “As contractors use up the funds from Paycheck Protection Program loans, even more job losses are inevitable unless the federal government provides an immediate economic boost.”
Construction employment fell in 209, or 58%, of 358 metro areas between October 2019 and October 2020. Construction employment was stagnant in 40 other metro areas, meanwhile, and only 109 metro areas—30%—added construction jobs during the past year.
Houston-The Woodlands-Sugar Land, Texas lost the most construction jobs over those 12 months (-19,800 jobs, -8%), followed by New York City (-17,300 jobs, -11%); Montgomery-Bucks-Chester Counties, Pa. (-12,100 jobs, -21%); and Minneapolis-St. Paul-Bloomington, Minn. (-10,400 jobs, -11%). Brockton-Bridgewater-Easton, Mass. had the largest percentage decline (-43%, -2,500 jobs), followed by Bloomsburg-Berwick, Pa. (-36%, -500 jobs); Altoona, Pa. (-32%, -1,000 jobs); Johnstown, Pa. (-30%, -800 jobs); and East Stroudsburg, Pa. (-30%, -600 jobs).
Dallas-Plano-Irving, Texas added the most construction jobs over the year (7,100 jobs, 5%), followed by Seattle-Bellevue-Everett, Wash. (4,700 jobs, 4%); Kansas City, Mo. (3,700 jobs, 12%); and Boise, Idaho (3,500 jobs, 13%). Walla Walla, Wash. had the highest percentage increase (25%, 300 jobs), followed by Lewiston, Idaho-Wash. (18%, 300 jobs); Oshkosh-Neenah, Wisc. (16%, 900 jobs); Fond du Lac, Wisc. (15%, 500 jobs); and Springfield, Mo. (15%, 1,400 jobs).
Association officials said the best way to curtail future construction job losses was for Congress to pass new federal coronavirus relief measures. These measures should include making new infrastructure investments, eliminating plans to tax Paycheck Protection Program loans and enacting liability reform to protect honest businesses from baseless coronavirus lawsuits.
“Construction employment is likely to continue falling in many parts of the country unless Congress quickly passes new coronavirus relief measures,” said Stephen E. Sandherr, the association’s chief executive officer. “Boosting infrastructure projects, preserving the benefits of the Paycheck Protection Program and protecting businesses from predatory attorneys will help stabilize the economy and demand for construction.”
View the metro employment 12-month data, rankings, top 10, new highs and lows, map.
Related Stories
Multifamily Housing | May 18, 2021
Multifamily housing sector sees near record proposal activity in early 2021
The multifamily sector led all housing submarkets, and was third among all 58 submarkets tracked by PSMJ in the first quarter of 2021.
Market Data | May 18, 2021
Grumman|Butkus Associates publishes 2020 edition of Hospital Benchmarking Survey
The report examines electricity, fossil fuel, water/sewer, and carbon footprint.
Market Data | May 13, 2021
Proliferating materials price increases and supply chain disruptions squeeze contractors and threaten to undermine economic recovery
Producer price index data for April shows wide variety of materials with double-digit price increases.
Market Data | May 7, 2021
Construction employment stalls in April
Soaring costs, supply-chain challenges, and workforce shortages undermine industry's recovery.
Market Data | May 4, 2021
Nonresidential construction outlays drop in March for fourth-straight month
Weak demand, supply-chain woes make further declines likely.
Market Data | May 3, 2021
Nonresidential construction spending decreases 1.1% in March
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories.
Market Data | Apr 30, 2021
New York City market continues to lead the U.S. Construction Pipeline
New York City has the greatest number of projects under construction with 110 projects/19,457 rooms.
Market Data | Apr 29, 2021
U.S. Hotel Construction pipeline beings 2021 with 4,967 projects/622,218 rooms at Q1 close
Although hotel development may still be tepid in Q1, continued government support and the extension of programs has aided many businesses to get back on their feet as more and more are working to re-staff and re-open.
Market Data | Apr 28, 2021
Construction employment declines in 203 metro areas from March 2020 to March 2021
The decline occurs despite homebuilding boom and improving economy.
Market Data | Apr 20, 2021
The pandemic moves subs and vendors closer to technology
Consigli’s latest market outlook identifies building products that are high risk for future price increases.
