Steel Markets
Construction Employment Benefits from Strong Residential Sector
Written by Sandy Williams
December 4, 2020
Construction employment gained 27,000 jobs in November due to continued strength in residential home building. Jobs in nonresidential increased at a slower rate due to pandemic-induced project cancellations, said the Associated General Contractors of America.
The disparity between residential and nonresidential construction widened in November, said AGC Chief Economist Ken Simonson. Residential building and specialty trade contractors added 15,400 jobs in November and have now recouped 96 percent of the employment losses they incurred in March and April. In contrast, nonresidential construction employment—comprising nonresidential building, specialty trades, and heavy and civil engineering construction—increased by only 11,900 jobs in November and has recovered only 56 percent of the jobs lost in March and April.
“The construction industry recovered a bit in November, but the future is far from certain for the industry,” said Simonson. “The nonresidential building and infrastructure segments are likely to shed jobs again amid an increase in coronavirus case counts unless Congress acts quickly to provide needed relief.”
Total construction employment increased by 0.4 percent from October to 7,360,000, but is still 3.7 percent below the pre-pandemic peak in February. AGC reports 1.1 million construction jobs were lost in March and April due to project cancellations and disruptions from the pandemic.
“The Trump administration is seeking to undermine the benefits of the Paycheck Protection Program by rewarding firms that saved jobs with a massive tax increase,” said Stephen E. Sandherr, the association’s chief executive officer. “These new taxes, coming on top of greater market uncertainty as coronavirus cases surge, will make it hard for many construction firms to retain current workers, not to mention add new ones.”
Employment data released by Commerce showed total nonfarm payroll employment rose by 245,000 in November and the unemployment rate dipped to 6.7 percent.
“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it,” said the Bureau of Labor Statics. “However, the pace of improvement in the labor market has moderated in recent months. In November, notable job gains occurred in transportation and warehousing, professional and business services, and health care. Employment declined in government and retail trade.”
Sandy Williams
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