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Why is Construction Employment Still Lagging Pre-Covid Levels?

Construction employment in June remained below the pre-pandemic levels of February 2020 in 39 states, according to an analysis by the Associated General Contractors of America.

New York and Wyoming suffered the worst losses, while Utah and Idaho added the most construction jobs. New York, Vermont and Iowa had the biggest declines in June. Georgia and Kentucky were the top gainers.

AGC officials put the blame on supply chain shortages and rising material prices, which are undermining demand for new projects and impacting construction firms’ ability to hire workers.

“The construction industry is a long way from full recovery in most states, in spite of a hot homebuilding market in many areas,” said Ken Simonson, AGC chief economist. “Soaring materials costs, long production times for key items and delayed deliveries are causing owners to postpone projects.”

From February 2020 to June 2021, New York shed the most construction jobs (54,300 jobs or 13.3%) followed by Texas (54,100 jobs, 6.9%) and California (36,500 jobs, 4%). Wyoming recorded the largest percentage loss (15.3%, 3,500 jobs), followed by Louisiana (15.1%, 20,700 jobs) and New York.

On the positive side, Utah added 7,000 jobs, (6.1%), followed by Idaho with 4,400 jobs (8%), South Dakota (1,400 jobs, 5.9%) and Rhode Island (1,200 jobs, 5.9%). Idaho claimed the largest percentage gain, followed by Utah, Rhode Island and South Dakota.