Three-fourths of all metro areas added construction jobs between July 2020 and last month, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials noted that while many metro areas have added jobs since last summer, construction employment still lags pre-pandemic levels in many areas as the industry faces a host of challenges.
“The rapid spread of the delta variant of coronavirus, along with soaring materials costs and multiple supply-chain difficulties, appears to be causing some project owners to delay starting construction,” said Ken Simonson, the association’s chief economist. “However, the virus flare-up threatens further job gains, particularly because construction workers have a lower vaccination rate and thus a higher risk of becoming ill than other occupations.”
Construction employment increased in 268 out of 358 metro areas over the last 12 months. Seattle-Bellevue-Everett, Wash. added the most construction jobs (10,200 jobs, 10%), followed by Sacramento--Roseville--Arden-
Construction employment declined from a year earlier in 54 metros and held steady in 36. Houston-The Woodlands-Sugar Land, Texas lost the most jobs: 7,000 or 3%, followed by New York City (-6,300 jobs, -4%); Miami-Miami Beach-Kendall, Fla. (-3,500 jobs, -7%); Nassau County-Suffolk County, N.Y. (-2,400 jobs, -3%) and Calvert-Charles-Prince George’s, Md. (-2,400 jobs, -7%). The largest percentage declines, 11%, were in Atlantic City-Hammonton, N.J. (-600 jobs) and Evansville, Ind.-Ky. (-1,100 jobs), followed by 9% decreases in Tuscaloosa, Ala. (-600 jobs) and Victoria, Texas (-300 jobs).
Association officials urged federal officials to take steps to address supply-chain woes and boost demand for many types of construction services. They continued to call for the removal of tariffs on a host of critical construction materials, including steel and aluminum. And they urged the House of Representatives to quickly pass bipartisan infrastructure legislation that would give a needed boost to construction demand at a time when many private sector owners are rethinking projects amid rising prices and the spiking coronavirus cases.
“Washington officials have the ability to help offset soaring materials prices and boost flagging demand for commercial construction,” said Stephen E. Sandherr, the association’s chief executive officer. “The president should put an immediate end to tariffs that are needlessly inflating the cost of key materials and members of the House should rapidly approve the bipartisan infrastructure bill.”
Related Stories
Market Data | Jun 14, 2016
Transwestern: Market fundamentals and global stimulus driving economic growth
A new report from commercial real estate firm Transwestern indicates steady progress for the U.S. economy. Consistent job gains, wage growth, and consumer spending have offset declining corporate profits, and global stimulus plans appear to be effective.
Market Data | Jun 7, 2016
Global construction disputes took longer to resolve in 2015
The good news: the length and value of disputes in the U.S. fell last year, according to latest Arcadis report.
Market Data | Jun 3, 2016
JLL report: Retail renovation drives construction growth in 2016
Retail construction projects were up nearly 25% year-over-year, and the industrial and office construction sectors fared well, too. Economic uncertainty looms over everything, however.
Market Data | Jun 2, 2016
ABC: Nonresidential construction spending down in April
Lower building material prices, a sluggish U.S. economy, and hesitation among private developers all factor into the 2.1% drop.
Market Data | May 20, 2016
Report: Urban area population growth slows
Older Millennials are looking to buy homes and move away to more affordable suburbs and exurbs.
Market Data | May 17, 2016
Modest growth for AIA’s Architecture Billings Index in April
The American Institute of Architects reported the April ABI score was 50.6, down from the mark of 51.9 in the previous month. This score still reflects an increase in design services.
Market Data | Apr 29, 2016
ABC: Quarterly GDP growth slowest in two years
Bureau of Economic Analysis data indicates that the U.S. output is barely growing and that nonresidential investment is down.
Market Data | Apr 20, 2016
AIA: Architecture Billings Index ends first quarter on upswing
The multi-family residential sector fared the best. The Midwest was the only U.S. region that didn't see an increase in billings.
Building Technology | Apr 11, 2016
A nascent commercial wireless sensor market is poised to ascend in the next decade
Europe and Asia will propel that growth, according to a new report from Navigant.
Industry Research | Apr 7, 2016
CBRE provides latest insight into healthcare real estate investors’ strategies
Survey respondents are targeting smaller acquisitions, at a time when market cap rates are narrowing for different product types.
