Construction Employment Off in 40 States

June 29, 2021

Construction employment in May remained below the April level in 40 states and the District of Columbia, according to an analysis of government data by the Associated General Contractors of America.

From April to May, construction employment decreased in 40 states and D.C., increased in eight states, and held steady in Maryland and Utah. The largest declines over the month occurred in New York, which lost 5,900 construction jobs or 1.6 percent: Illinois, down 5,600 jobs or 2.5 percent; and Pennsylvania, down 3,300 jobs or 1.3 percent. The steepest percentage declines since April occurred in Vermont, down 3.9 percent or 600 jobs); Maine off  3.5 percent or 1,100 jobs; and Delaware, down 3.0 percent or 300 jobs.

Association officials said that employment figures indicated that skyrocketing materials prices and excessive delays in receiving key construction supplies were holding back the industry’s recovery.

“Today’s numbers show that impacts from the pandemic on demand for projects and on materials costs and the supply chain are weighing down construction in most parts of the country,” said Ken Simonson, chief economist, in a prepared statement. “In the few states where industry employment has topped the pre-pandemic levels of February 2020, most gains are likely attributable more to demand for homebuilding and remodeling than to most categories of nonresidential building and infrastructure projects.”

Florida added the most construction jobs between April and May, with growth of 3,700 jobs or 0.6 percent; Michigan added 1,600 jobs or 0.9 percent; and Minnesota grew by 1,200 jobs or 0.9 percent. Oklahoma had the largest percentage gain for the month at 1.3 percent or 1,000 jobs.

Employment declined from the pre-pandemic peak month of February 2020 in 42 states and D.C. Texas lost the most construction jobs over the period, down 49,100 jobs or 6.3 percent; New York lost 45,200 jobs or 11.1 percent; and California is down 30,800 jobs or 3.4 percent. Wyoming recorded the largest percentage loss, down 15.3 percent or 3,500 jobs; and Louisiana was down 15.1 percent or 20,700 jobs.

Among the eight states that added construction jobs since February 2020, the largest pickup occurred in Utah, up 5,000 jobs or 4.4 percent), followed by Idaho, up 3,400 jobs or 6.2 percent, and South Dakota, up  1,200 jobs or 5.0 percent).

Source: AGC