Construction employment declined in 20 states and D.C. in March according to the Associated General Contractors of America (AGC). Association officials warned that these cancellations mean more job losses are likely to occur unless congress helps cover declining state revenues, and adds funding for Paycheck Protection Program loans.
“While construction employment declined in many parts of the country last month, far more states, local governments and project owners have halted construction in the five weeks since the government collected this data,” said Ken Simonson, the association’s chief economist. “Our two latest surveys show a steep rise in cancellations of scheduled projects, which is leading to furloughs and terminations for both jobsite and office workers.”
Construction employment decreased in 20 states and the District of Columbia, stayed the same in six states, and increased in 25 states. Over the 12 months ending in March, construction employment declined in six states and D.C., held steady in two states, and increased in 41 states.
This data is based on employment as of March 12, before most states or owners began curtailing construction.
In the association’s latest survey, 53 percent of the 830 respondents reported that a project owner had ordered a halt or cancellation to a current or upcoming project. The share of respondents reporting cancellations jumped to 19 percent from 7 percent a week earlier, suggesting that the volume of work will shrink rapidly once current projects finish. Another impediment to comes from state and local officials who have ordered construction shutdowns.
The survey also found that 40 percent of respondents had furloughed or terminated workers by April 9, an increase from 31 percent just a week earlier. While 36 percent of firms reported furloughs or terminations of jobsite workers, layoffs also affected office and other workers at 18 percent of firms.
Construction job losses are likely to accelerate in many states amid the coronavirus pandemic. Those job losses will get worse now that several states have canceled or significantly delayed planned highway projects. Officials urged Congress and the Trump administration to provide funding to cover the lost revenue, to protect existing jobs, and to make sure roads are repaired while traffic is light. They also urged Washington officials to invest more funds in the now-depleted Paycheck Protection Program and other forms of infrastructure.
Source: SGC
