top of page

Construction Job Losses Could Continue Without Federal Funding, Association Warns


Construction employment increased from May 2020 to June 2020 in 31 states and the District of Columbia, according to government employment data released today and a compilation of weekly jobsite hours by construction technology firm Procore. Construction employment declined in 18 states and was unchanged in Alaska.


"The widespread job gains in June follow even more universal increases in May," said Ken Simonson, chief economist for the Associated General Contractors of America.

The Associated General Contractors of America (AGC) warns that the gains may have stalled and urged officials in Washington to promptly enact funding for infrastructure projects and plug looming state and local budget deficits to prevent a new round of job losses.


“The widespread job gains in June follow even more universal increases in May,” said Ken Simonson, the association’s chief economist. “But the government’s employment snapshot was based on payrolls during the week of June 12. More recent data collected by Procore on hours worked on jobsites suggests employment topped out around mid-June and may have begun to decline.”

Procore’s software records the number of hours worked each week on its clients’ construction job sites. The California-based company has been mapping total jobsite hours in each state since the week of March 1, around the time many states restricted activity due to COVID-19.

As states relaxed their shutdown orders and the weather grew more favorable for construction, jobsite hours increased briefly. Procore reported that jobsite hours reached a peak of 15.1 million during the week of June 7-13. Since then, preliminary totals have slipped to 15 million during the week of June 14-20 and 14.6 million during the week of June 21-27.


New York added the most construction jobs from May to June (42,000 jobs or 14.2%), while Massachusetts had the largest percentage increase (16.3% or 19,700 construction jobs). Louisiana lost the most construction jobs (-3,900 jobs or -3.1%), and Nevada had the highest percentage loss (-3.5% or -3,500 jobs).

AGC officials are concerned that recent flare-ups of coronavirus across most states will lead to more project cancellations, forcing contractors to lay off workers again. They are concerned public construction will decline precipitously if Congress and the Trump administration doesn’t promptly enact new infrastructure funding measures and backfill the massive budget gaps that have opened in state and local government budgets.

“Only the federal government has the means to keep infrastructure and other needed public construction on track,” said Stephen E. Sandherr, the association’s CEO. “It would be tragic to miss the opportunity to support the economy, keep thousands of construction employees at work, and invest in much-needed upgrades to roads, transportation facilities, water and sewer systems.”

View Procore's data

Read ACG's press release

Comentarios


bottom of page