Contractors are laying off workers once they complete projects that began prior to the pandemic, according to the Associated General Contractors of America (AGC), because private owners and public agencies are hesitant to commit to new construction.
“A dearth of new construction work is forcing more and more contractors to lay off employees once they complete projects started before the pandemic hit in early 2020,” said Ken Simonson, the association’s chief economist, in a prepared statement. “Private nonresidential construction spending tumbled 10 percent from December 2019 to December 2020, and public work has been slowing since last March, according to recent Census Bureau data.”
Construction employment decreased from December 2019 to December 2020 in more than half of the nation’s metro areas despite a surge in homebuilding and remodeling, according to AGC’s analysis of government data. Construction employment fell in 191 metro areas, was stagnant in 33, and only 134 metro areas—37 percent—added construction jobs between December 2019 and December 2020.
Houston-The Woodlands-Sugar Land, Texas, lost the largest number of construction jobs in 2020 (-24,500 jobs, -10 percent), followed by New York City (-19,100 jobs, -12 percent); Midland, Texas (-9,200 jobs, -23 percent); Montgomery-Bucks-Chester counties, Pennsylvania (-9,100 jobs, -17 percent); and Denver-Aurora-Lakewood, Colorado (-6,900 jobs, -6 percent).
Brockton-Bridgewater-Easton, Massachusetts had the largest percentage decline (-40 percent, -2,100 jobs), followed by Altoona, Pennsylvania (-34 percent, -1,000 jobs); Bloomsburg-Berwick, Pennsylvania (-33 percent, -400 jobs); Johnstown, Pennsylvania (-29 percent, -700 jobs); and East Stroudsburg, Pennsylvania (-26 percent, -500 jobs).
Indianapolis-Carmel-Anderson, Indiana, added the most construction jobs over the year (5,600 jobs, 10 percent), followed by Northern Virginia (5,300 jobs, 7 percent); Seattle-Bellevue-Everett, Washington (4,900 jobs, 5 percent); Baltimore-Columbia-Towson, Maryland (4,800 jobs, 6 percent); and Kansas City, Missouri (3,300 jobs, 11 percent). Walla Walla, Washington had the highest percentage increase (17 percent, 200 jobs), followed by Fond du Lac, Wisconsin (16 percent, 500 jobs); Springfield, Missouri (15 percent, 1,400 jobs); and Dutchess-Putnam counties, New York (15 percent, 1,300 jobs).
Association officials said job losses are likely to widen as demand for nonresidential construction suffers and state and local budget challenges undermine demand for public projects.
Source: AGC
