Construction employment declined by 975,000 jobs in April as reported in a new survey by the Associated General Contractors of America. Data from construction technology firm Procore show deteriorating demand for construction, officials with the association announced today. The new economic data underscores the need for construction industry recovery, including infrastructure funding, safe harbor provisions, and fixes to the Paycheck Protection Program guidance.
“Today’s jobs report, our new survey results and Procore’s data make it clear that the construction industry is not immune to the economic damage being inflicted on our country by the pandemic,” said Ken Simonson, the association’s chief economist. “Without new federal help, it is hard to see a scenario where the construction industry will be able to recover any time soon.”
The loss of 975,000 construction jobs from March to April constituted nearly 13 percent of the industry’s employment and was, by far, the worst one-month decline ever. He added that unemployment among workers with recent construction experience soared by 1.1 million from a year earlier, to 1,531,000, while the unemployment rate in construction jumped from 4.7 percent in April 2019 to 16.6 percent.
Simonson noted that a survey of over 800 construction firms the association released today found that while only 30 percent of firms report projects have been halted by government order–down from 35 percent two weeks ago–37 percent say their owners have voluntarily halted work out of fears of the pandemic. Thirty-one percent report that owners have canceled projects because of a predicted reduction in demand. And 21 percent report having projects canceled as a result of a loss of private funding.
All told, 67 percent of firms report having a project canceled or delayed since the start of the outbreak in early March. These cancellations have forced some firms to cut staff. Twenty-three percent, for example, report cutting staff in March and 22 percent cut staff in April.
