Construction Employment Declines are Widespread as Projects Face Increased Materials Costs, Delays

Construction employment in May remained below the April level in 40 states and the District of Columbia, according to an analysis  by the Associated General Contractors of America of government employment data. Association officials said skyrocketing materials prices and excessive delays in receiving key construction supplies were holding back the industry’s recovery.

“Today’s numbers show that impacts from the pandemic on demand for projects and on materials costs and the supply chain are weighing down construction in most parts of the country,” says Ken Simonson, the association’s chief economist. “In the few states where industry employment has topped the pre-pandemic levels of February 2020, most gains are likely attributable more to demand for homebuilding and remodeling than to most categories of nonresidential building and infrastructure projects.”