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AGC: Construction Employment Still Lagging in November

December 18, 2020

Construction employment remains below pre-pandemic levels in 35 states even though 31 states and D.C. added jobs from October to November, said the Associated General Contractors in an analysis of November government data.

“An increase in project cancellations and postponements is forcing nonresidential contractors to lay off workers as they complete projects started before the pandemic and firms exhaust their Paycheck Protection Program loans,” said AGC Chief Economist Ken Simonson. “Despite strong demand for single-family homebuilding and remodeling, overall industry employment is likely to shrink in more states in the absence of federal assistance.”

AGC said a renewal of the Paycheck Protection Program is needed along with clarification by Congress that firms will not incur tax liability when using the loans as intended.

Seasonally adjusted construction employment in November was lower than in February—the last month before the pandemic forced many contractors to suspend work—in 37 states, Simonson noted. New York lost the most construction jobs over the nine-month period (-39,700 jobs or -9.7 percent), followed by Texas (-37,200 jobs, -4.7 percent). Vermont experienced the largest percentage loss (-24.5 percent, -3,600 jobs), followed by North Dakota (-13.9 percent, -4,100 jobs).

Only 15 states and the District of Columbia added construction jobs from February to November. Virginia added the most jobs and highest percentage (11,800 jobs, 5.8 percent), followed by Utah (5,800 jobs, 5.1 percent).

Construction employment decreased from October to November in 17 states, increased in 31 states and D.C., and was unchanged in Maine and Nebraska. California had the largest loss of construction jobs from October to November (-5,800 jobs or -0.7 percent), followed by New Jersey (-3,800 jobs, -2.5 percent) and Nevada (-3,700 jobs, -3.9 percent). Nevada had the largest percentage decline, followed by South Dakota (-3.8 percent, -1,000 jobs).