The Marcum Commercial Construction Index for the third quarter of 2020 reports that the industry continues to recover jobs lost from the recession caused by Covid-19. Construction employment has rebounded since declining in March and April, and the industry’s unemployment rate stands at 6.8 percent as of October, just below the 6.9 percent percent rate observed across all industries.
“The first two months of the pandemic witnessed the elimination of 1.1 million construction jobs. Between May and October, the industry recovered 73 percent of those lost positions,” wrote Anirban Basu, Marcum’s chief construction economist.
Construction data indicate that private sector spending contracted 6 percent on a year-over-year basis in September 2020, while public sector spending declined by 2 percent.
Construction input prices have not been subject to inflation thus far, although Basu warns that could change. “Materials prices expanded nearly 2 percent in September and are now higher than they were at the same time last year. Despite the lingering pandemic, the global economy has been recovering, increasing demand for key commodities. Rapid viral spread, including in Europe and parts of North America, render materials shortages more likely during the winter months.”
Basu predicts that the economy will dip back into recession during the winter.
"Work-from-home, lockdowns, and cut-backs are beyond our control," he says. "But we can use this time to prioritize trade education to bring more young people into construction careers and to help the mature construction workforce develop new skill sets."
