A large number of construction contractors are having to lay off workers after completing projects because the pandemic is causing fewer new project starts, according to the Associated General Contractors of America (AGC). According to government data, only 34% of major metropolitan areas in the United States added construction jobs between November 2019 and November 2020.
“Canceled and postponed projects appear to be more common than new starts for far too many contractors,” Ken Simonson, AGC’s chief economist, said in a news release. “Our association’s 2021 Construction Hiring and Business Outlook Survey found three times more contractors have experienced postponements and cancellations than new or expanded projects.”
Government data suggests construction employment decreased in 57% of the 358 major metropolitan areas in the U.S. in the 12 months from November 2019 to November 2020. According to the AGC, many metro areas may lose further construction jobs amid declining demand and continued project cancellations and delays.
“Construction employment is likely to fall further in many parts of the country as the coronavirus continues to weigh on demand for nonresidential projects,” Stephen Sandherr, the CEO of the AGC, said. “Unless market conditions change rapidly, this year is likely to prove very challenging for many construction employers.”
Between November 2019 and November 2020, Houston-The Woodlands-Sugar Land, Texas and New York City lost the most construction jobs in pure numbers while Brockton-Bridgewater-Easton, Mass., and Altoona, Pa. experienced the largest percentage decrease in industry employment. During the same 12-month period, Phoenix-Mesa-Scottsdale, Ariz., and Baltimore-Columbia-Towson, Md., added the most construction jobs while Walla Walla, Wash., and Boise, Idaho, experienced the largest percentage increase in industry employment.
