Steel Markets

Construction Employment Struggles to Reach Pre-Pandemic Levels

November 20, 2020

Construction employment is still below pre-pandemic levels in three-fourths of the nation, reveals the latest data analysis by the Associated General Contractors of Americas. Although 36 states added new construction jobs in October, the seasonally adjusted number was lower than in February before the pandemic took hold.

“An increasing number of nonresidential contractors are experiencing cancellations that are forcing them to lay off workers,” said Ken Simonson, the association’s chief economist. “Although single-family homebuilding and remodeling contractors are adding workers, most states are likely to have a net loss of construction workers soon, especially from high-paying, nonresidential jobs.”

In October, California added the most construction jobs during the month (26,300 jobs, 3.1 percent), followed by Texas (9,400 jobs, 1.3 percent). Alaska had the largest percentage gain for the month (10.1 percent, 1,500 jobs), followed by Iowa (7.0 percent, 4,700 jobs).

The COVID-19 crisis caused losses for large and small businesses, disrupted supply chains and created shortages of building materials.

Contractors in 37 states were forced to suspend work due to coronavirus restrictions from February to October. Only 13 states and the District of Columbia added jobs during the period. New York lost the most jobs (41,600) during the span, followed by Texas with 41,500 jobs. By percentage, Vermont lost 21.8 percent of its construction jobs, while North Dakota lost 13.2 percent.

AGC urges the government to enact a new series of coronavirus relief measures to help offset declining nonresidential construction demand. Priorities include new infrastructure investments, liability reforms to protect firms from pandemic lawsuits and extension and reform of the Paycheck Protection Program.

“With the pandemic raging again in most parts of the country, countless construction jobs are at risk as owners cancel or delay construction projects amid uncertainty about the future,” said Stephen E. Sandherr, the association’s chief executive officer. “Enacting needed new recovery measures now will help protect many good-paying construction careers during what will likely be a difficult winter for the economy.”