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
Market Data | Oct 31, 2016
Nonresidential fixed investment expands again during solid third quarter
The acceleration in real GDP growth was driven by a combination of factors, including an upturn in exports, a smaller decrease in state and local government spending and an upturn in federal government spending, says ABC Chief Economist Anirban Basu.
Market Data | Oct 28, 2016
U.S. construction solid and stable in Q3 of 2016; Presidential election seen as influence on industry for 2017
Rider Levett Bucknall’s Third Quarter 2016 USA Construction Cost Report puts the complete spectrum of construction sectors and markets in perspective as it assesses the current state of the industry.
Industry Research | Oct 25, 2016
New HOK/CoreNet Global report explores impact of coworking on corporate real rstate
“Although coworking space makes up less than one percent of the world’s office space, it represents an important workforce trend and highlights the strong desire of today’s employees to have workplace choices, community and flexibility,” says Kay Sargent, Director of WorkPlace at HOK.
Market Data | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.
