Construction employment levels in June remained below pre-pandemic levels in 39 states across the country, according to a recent analysis of government data by the Associated General Contractors of America (AGC). The AGC said many firms are struggling to cope with ongoing supply chain challenges and rising material prices, which in many cases are undermining demand for new projects and firms’ ability to hire new workers.
“The construction industry is a long way from full recovery in most states, in spite of a hot homebuilding market in many areas,” AGC chief economist Ken Simonson said in a prepared statement. “Soaring material costs, long production times for key items, and delayed deliveries are causing owners to postpone projects.”
According to the AGC, construction employment increased in only 11 states from February 2020—the last month before the pandemic caused project shutdowns and cancellations—and June 2021. Utah added the most construction jobs over that period and Idaho experienced the largest percentage increase in construction employment since February 2020.
New York, Texas, and California lost the most construction jobs between February 2020 and June 2021, while Wyoming and Louisiana experienced the largest percentage decrease in employment over the same period.
Construction employment decreased in 25 states on a month-to-month basis between May and June, according to the AGC. New York and Texas experienced the largest month-to-month job losses, while Vermont and Alabama lost the largest percentage of construction jobs between May and June. Georgia added the most jobs in pure numbers on a month-to-month basis, while Kentucky experienced the largest percentage boost between months.
The AGC forecasts that employment growth likely will not occur in many parts of the country until factors contributing to supply chain challenges improve.
