Const. Employment Declines in Most Metros

Nov. 3, 2020

Construction firms are experiencing widespread project deferrals and cancellations, along with disruptions to ongoing work and few new project awards, as the economic damage from the pandemic drags down industry employment.

“The survey results make it clear that the months-long pandemic is undermining demand for projects, disrupting vital supply chains and clouding the industry’s outlook,” said Ken Simonson, the association’s chief economist. “Without new federal relief measures, these challenges pose a significant threat to current construction employment levels.”

Simonson noted that three-quarters of survey respondents report having a scheduled project postponed or canceled. He added that is up from the 60 percent of contractors who reported a canceled project in the August survey and 32 percent who did so in June. Meanwhile, only 23 percent of contractors report working on new or expanded construction projects as a result of the pandemic, about the same percentage as in June.

The coronavirus is also disrupting projects that are still underway, Simonson noted. Seventy-eight percent of respondents report they are currently experiencing project delays or disruptions, up from 57 percent in June. In particular, 42 percent of firms are experiencing disruptions due to a shortage of construction materials, equipment, or parts. In addition, 35 percent are experiencing disruptions because of a shortage of craftworkers and/or subcontractors. Only 7 percent are experiencing disruptions because of a shortage of personal protective equipment.

The survey also showed 34 percent of respondents report they do not expect their firm’s volume of business will return to pre-pandemic levels for at least a year. In fact, 30 percent of firms report they have already furloughed or terminated employees because of the coronavirus.

Construction employment fell in 234, or 65 percent, of 358 metro areas between September 2019 and September 2020. Construction employment was stagnant in 38 other metro areas, meanwhile, and only 86 metro areas added construction jobs during the past year.

Houston-The Woodlands-Sugar Land, Texas lost the most construction jobs over those 12 months (-24,400 jobs, -10 percent), followed by New York City (-19,500 jobs, -12 percent). Brockton-Bridgewater-Easton, Mass. had the largest percentage decline (-36 percent, -2,000 jobs), followed by Altoona, Pa. (-32 percent, -1,000 jobs) and Johnstown, Pa. (-32 percent, -900 jobs).

Dallas-Plano-Irving, Texas added the most construction jobs from September 2019 to September 2020 (5,100 jobs, 3 percent), followed by Baltimore-Columbia-Towson, Md. (4,700 jobs, 6 percent). Walla Walla, Wash. had the highest percentage increase (25 percent, 300 jobs), followed by Fond du Lac, Wisc. (15 percent, 500 jobs).