Construction employment declined for the third time in the past four months in May as nonresidential contractors coped with lengthening and unpredictable delivery times that limited their ability to start or complete projects, according to an analysis by AGC. Association officials added that many contractors report they are having a hard time finding qualified workers to hire as some people remain reluctant to return to work while their children are learning from home, or they are collecting elevated unemployment supplements.
Seasonally adjusted construction employment in May totaled 7,423,000, a drop of 20,000 from the downwardly revised April total. Industry employment declined as well in April and February. The total in May remained 225,000 less than in February 2020, the high point before the pandemic drove construction employment down by more than a million jobs.
The gap widened in May between residential construction, which has experienced feverish demand for new and remodeled housing, and nonresidential construction, which has been declining, aside from a few niches. Residential construction firms—contractors working on new housing, additions, and remodeling—gained 1,900 employees during the month and employed 35,000 more workers (1.2 percent) in May than in the pre-pandemic peak month of February 2020. In contrast, the nonresidential sector—comprising nonresidential building, specialty trades, and heavy and civil engineering contractors—shed 21,800 jobs in May and employed 260,000 fewer workers or 5.6 percent less than in February 2020.
Association officials urged Congress and the Biden administration to take steps to address the record materials price increases and supply chain bottlenecks. They said the President should end tariffs on key materials like lumber, steel, and aluminum.
