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 | Jan 27, 2021
2021 multifamily housing outlook: Dallas, Miami, D.C., will lead apartment completions
In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.
Market Data | Jan 26, 2021
Construction employment in December trails pre-pandemic levels in 34 states
Texas and Vermont have worst February-December losses while Virginia and Alabama add the most.
Market Data | Jan 19, 2021
Architecture Billings continue to lose ground
The pace of decline during December accelerated from November.
Market Data | Jan 19, 2021
2021 construction forecast: Nonresidential building spending will drop 5.7%, bounce back in 2022
Healthcare and public safety are the only nonresidential construction sectors that will see growth in spending in 2021, according to AIA's 2021 Consensus Construction Forecast.
Market Data | Jan 13, 2021
Atlanta, Dallas seen as most favorable U.S. markets for commercial development in 2021, CBRE analysis finds
U.S. construction activity is expected to bounce back in 2021, after a slowdown in 2020 due to challenges brought by COVID-19.
Market Data | Jan 13, 2021
Nonres construction could be in for a long recovery period
Rider Levett Bucknall’s latest cost report singles out unemployment and infrastructure spending as barometers.
Market Data | Jan 13, 2021
Contractor optimism improves as ABC’s Construction Backlog inches up in December
ABC’s Construction Confidence Index readings for sales, profit margins, and staffing levels increased in December.
Market Data | Jan 11, 2021
Turner Construction Company launches SourceBlue Brand
SourceBlue draws upon 20 years of supply chain management experience in the construction industry.
Market Data | Jan 8, 2021
Construction sector adds 51,000 jobs in December
Gains are likely temporary as new industry survey finds widespread pessimism for 2021.
Market Data | Jan 7, 2021
Few construction firms will add workers in 2021 as industry struggles with declining demand, growing number of project delays and cancellations
New industry outlook finds most contractors expect demand for many categories of construction to decline.
