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AGC: Construction Jobs Lag Pre-pandemic Levels in 42 States

March 16, 2021

Construction employment continues to lag pre-pandemic levels in most of the U.S., says a new analysis by the Associated General Contractors of America. Only eight states added construction jobs from February to January 2021 while 42 states remained below February 2020 levels.

“Despite improvement in many sectors of the economy, nonresidential contractors are coping with widespread project cancellations and postponements, soaring materials costs and lengthening delivery times,” said Ken Simonson, the association’s chief economist. “That combination makes further job cuts likely in many states.”

In a survey of 1,500 firms, 34% said they reduced employee headcount in 2020 compared to just 20% that added employees. More than 75% of firms reported project cancellations or delays.

From December to January, 19 states and D.C. lost construction jobs, 27 states added jobs, and there was no change in Alaska, North and South Dakota, and Wyoming. California lost 4,000 jobs during the period, followed by South Carolina and Illinois, both losing 3,200 jobs.

Florida added the most construction jobs over the month, 3,500, followed by Texas. Vermont had the largest monthly percentage gain at 3.4%.

“The pandemic is driving away projects, contributing to spiking materials prices and helping make delivery schedules unreliable,” said the association’s CEO Stephen Sandherr. “Contractors will not be able to build back better if they have to keep paying higher prices for materials that rarely arrive on time.”