Construction Employment Decreases in Majority of Major Metros Between February 2020 and February 2021

The non-residential construction sector continues to recover more slowly from the early months of the pandemic than the residential sector.

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Amid project cancellations, rising material prices, supply chain problems, construction employment decreased in 236 of the nation’s metro areas between February 2020 and February 2021, according to an analysis of government data by the Associated General Contractors of America (AGC). AGC chief economist Ken Simonson said few places have recovered from the pandemic-induced impacts on the construction industry and several factors, including rising material prices and supply chain issues, are negatively contributing to the construction employment environment.

According to the government data, the non-residential sector remains more impacted than the residential sector. According to the National Association of Home Builders’ (NAHB) Eye on Housing blog, employment in residential construction surpassed pre-pandemic levels from February 2020. The NAHB reports that only 64% of non-residential construction jobs lost in March and April 2020 have been recovered.

The AGC reports Houston-The Woodlands-Sugar Land, Texas, New York City, and Chicago-Naperville-Arlington Heights, Ill.m, lost the largest number of construction jobs between February 2020 and February 2021. Odessa, Texas, Lake Charles, La., and Midland-Longview, Texas, lost the largest percentage of construction jobs in the 12-month period.

Eight-three metro areas added construction jobs in the past 12 months, with the largest employment growth occurring in Sacramento-Roseville-Arden-Arcade, Calif., and Seattle-Bellevue-Everett, Wash. Sierra Vista-Douglas, Ariz., and Cleveland, Tenn., experienced the largest percentage growth in construction employment between February 2020 and February 2021.

The AGC cautioned that several proposed labor laws, including the PRO Act, could make it harder for firms to add new employees

About the Author

Vincent Salandro

Vincent Salandro is an associate editor for Builder. He covers products for the Journal of Light Construction and also has stories appearing in other Zonda publications. He earned a B.A. in journalism and a B.S. in economics from American University.

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