Steel Markets

AGC: Construction Labor Shortage Persists in April

May 13, 2021

Construction employment stalled in April, said the Associated General Contractors of America. Both nonresidential contractors and homebuilders reported difficulty sourcing materials and labor.

“Contractors are experiencing unprecedented intensity and a range of cost increases, supply-chain disruptions and worker shortages that have kept firms from increasing their workforces,” said AGC Chief Economist Ken Simonson. “These challenges will make it difficult for contractors to rebound as the pandemic appears to wane.”

Construction employment in April totaled 7,452,000, matching the March level, but was 2.6 percent or 196,000 workers below its most recent peak in February 2020.

AGC said there is a stark difference between residential and nonresidential recovery rates since the pre-pandemic peak in February 2020. Residential construction firms gained only 3,000 employees during the month, but have added 46,000 workers or 1.6 percent over 14 months. In contrast, the nonresidential sector shed 3,000 jobs in April and employed 242,000 fewer workers or 5.2 percent less than in February 2020.

“Ironically, the latest coronavirus relief bill may actually be holding back economic growth by keeping people away from work at a time when demand is rebounding,” said Stephen E. Sandherr, the association’s CEO. “Federal officials need to look at ways to encourage people to return to work, end damaging tariffs on materials like steel and lumber, and act to ease shipping delays and backlogs.”