Construction employment declines in 49 states and D.C.

An analysis by the Associated General Contractors of America (AGC) has shown that construction employment declined in Washington D.C. and every state except South Dakota in April.

At the same time, the association released a new survey that found rising project cancellations to be forcing many firms to furlough or terminate employees, even as federal relief measures help avoid further job losses. AGC officials urged the Districts officials to act quickly on measures like new infrastructure funding, liability protections for employers and extending the Paycheck Protection Program.

“Today’s state employment report shows how widespread—and deep—the job losses have been among construction workers, despite a smattering of new or accelerated projects,” says Ken Simonson, the association’s chief economist.  “Meanwhile, our latest survey indicates that the paycheck loan program has enabled some companies to retain or add workers for now, but that relief will expire soon if not extended.”

Simonson says the loss of 975,000 construction jobs, or 13 percent, nationwide from March to April pushed down industry employment to multi-year lows in many states. For example, New York experienced the largest construction job loss over the month (-166,200 jobs or -40.8 percent) and Vermont had the largest percentage decline (-6,800 construction jobs or -46.3 percent).

South Dakota was the only state to add construction jobs over the month, adding 500 jobs, or 2 percent.

According to AGC’s latest survey, more than two-thirds, or 69 percent, of the 742 respondents reported having a project canceled or delayed since the start of the outbreak in early March. In addition, an increasing share of respondents reported that projects they expected to start in June or later had been cancelled.

Simonson noted that project cancellations have forced 30 percent of firms to furlough or terminate employees, but an equal share has added workers, including some firms that laid off employees earlier. “The Paycheck Protection Program, which provides no-cost loans for firms to cover payroll expenses for a short time, appears to have achieved the goal of helping contractors retain or add workers for now,” he added.

Association officials warned that the Paycheck Protection Program benefits will end soon unless Congress acts to extend it. They also called on Congress to pass funding for highways and other infrastructure and to provide liability protections for employers following safety guidelines from coronavirus lawsuits.

“Washington’s temporary relief measures appear to have helped the construction industry avoid even more layoffs,” says AGC CEO Stephen Sandherr. “Now Congress and the administration need to focus on measures that will revive the economy, rebuild demand for construction and restore American jobs.”