Eight states and the District of Columbia have recouped pandemic-induced losses of construction jobs from the spring, according to an analysis of government employment data by the Associated General Contractors of America (AGC). Seasonally adjusted construction employment in September remained lower than pre-pandemic levels in February in 42 states.
According to the AGC, new spikes in coronavirus (COVID-19) cases and ongoing pandemic-related costs and revenue losses are causing delays and project cancellations. The single-family home building construction sector remains strong and resilient, however nonresidential construction and multifamily construction activity has stalled, according to AGC chief economist Ken Simonson.
California and Texas have lost the most construction jobs from February to September, while Vermont experienced the largest percentage loss of construction jobs over the same period. Of the states to see construction employment increase during the pandemic, Virginia added the most jobs in pure numbers while South Dakota posted the largest percentage gain in construction employment.
On a monthly basis, construction employment increased in 32 states between August and September. New York, Louisiana, New Hampshire, and Washington experienced the greatest month-over-month boost in construction employment.
The AGC said new outbreaks of the virus across many states are causing new project cancellations, which could have a further negative effect on construction employment. The adoption of the Paycheck Protection Program (PPP) during the spring enabled the construction industry to bounce back quickly from the first round of shutdowns and delays, according to the AGC.
