Construction layoffs spread rapidly as COVID-19 shuts down projects: AGC

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More than a quarter of construction firms responding to an online conducted by the Associated General Contractors (AGC) of America in early April reported they had furloughed or terminated jobsite workers because of the coronavirus pandemic. The finding contrasts starkly with the association’s of government data released earlier this month. that showed a majority of the nation’s metro areas added construction jobs through February.

Here is employment data for several California communities before the COVID-19 crunch, including the employee numbers in February 2019, February 2020, the percentage change and the actual number change, and the community’s overall ranking nationally.

  • California Statewide Construction 847,700 875,300 3% 27,600
  • Statewide Mining, Logging, and Construction 869,500 897,400 3% 27,900
  • Anaheim-Santa Ana-Irvine, CA Div. Construction 103,800 104,700 1% 900 199 Bakersfield, CA Construction 15,700 16,400 4% 700 115
  • Chico, CA Mining, Logging, and Construction 4,100 4,300 5% 200 97
  • El Centro, CA Mining, Logging, and Construction 1,800 1,900 6% 100 63
  • Fresno, CA Construction 17,700 18,300 3% 600 143
  • Hanford-Corcoran, CA Mining, Logging, and Construction 1,000 1,000 0% 0 218
  • Los Angeles-Long Beach-Glendale, CA Div. Construction 145,500 154,400 6% 8,900 63
  • Madera, CA Mining, Logging, and Construction 1,900 2,000 5% 100 97
  • Merced, CA Mining, Logging, and Construction 2,300 2,600 13% 300 5
  • Modesto, CA Mining, Logging, and Construction 10,000 10,300 3% 300 143
  • Napa, CA Mining, Logging, and Construction 4,600 4,500 -2% -100 289
  • Oakland-Hayward-Berkeley, CA Div. Construction 71,600 74,600 4% 3,000 115
  • Oxnard-Thousand Oaks-Ventura, CA Construction 16,300 17,200 6% 900 63
  • Redding, CA Mining, Logging, and Construction 3,100 3,400 10% 300 17
  • Riverside-San Bernardino-Ontario, CA Construction 101,100 106,600 5% 5,500 97
  • Sacramento–Roseville–Arden-Arcade, CA Construction 64,200 66,000 3% 1,800 143
  • Salinas, CA Construction 6,300 6,700 6% 400 63 San Diego-Carlsbad, CA Construction 81,800 83,600 2% 1,800 173
  • San Francisco-Redwood City-South San Francisco, CA Div. Construction 42,500 41,600 -2% -900 289
  • San Jose-Sunnyvale-Santa Clara, CA Construction 50,300 51,400 2% 1,100 173
  • San Luis Obispo-Paso Robles-Arroyo Grande, CA Mining, Logging, and Construction 7,700 8,300 8% 600 34
  • San Rafael, CA Div. Construction 7,400 7,300 -1% -100 270
  • Santa Cruz-Watsonville, CA Mining, Logging, and Construction 4,200 4,500 7% 300 52
  • Santa Maria-Santa Barbara, CA Construction 8,900 8,800 -1% -100 270
  • Santa Rosa, CA Construction 15,400 17,200 12% 1,800 7
  • Stockton-Lodi, CA Construction 12,300 12,600 2% 300 173 Vallejo-Fairfield, CA Construction 11,600 12,500 8% 900 34
  • Visalia-Porterville, CA Mining, Logging, and Construction 6,000 6,400 7% 400 52
  • Yuba City, CA Mining, Logging, and Construction 2,600 2,900 12% 300 7

“The metro-level employment data show that construction was still growing strongly in many parts of the country in February, immediately before the pandemic forced contractors to shut down projects and lay off workers,” said Ken Simonson, the association’s chief economist. “In contrast, our survey, completed less than a week ago, found that a majority of respondents had been told by owners or government agencies to cease work.” Click for additional video comments from Mr. Simonson regarding last week’s survey.

Simonson added that 27 percent of respondents to the survey reported they have furloughed or terminated construction workers. In addition, 55 percent of the firms said they had been directed to delay or cancel projects by their clients, while 26 percent reported they had been directed to stop construction activities by government officials. The survey was conducted from March 30 through April 2 and drew 1,294 responses.

The association’s analysis of metro employment data showed that construction employment increased between February 2019 and February 2020 in 217 (61 percent) of metro areas, declined in 89, and held steady in 52. The Dallas-Plano-Irving, Texas metro added the most construction jobs over 12 months (12,000 jobs, 8 percent), while the largest percentage increase occurred in Walla Walla, Wash. (22 percent, 200 jobs). The Orange-Rockland-Westchester, N.Y. area lost the most construction jobs over the year (-4,400 jobs, -10 percent). The largest percentage decline occurred in Danville, Ill. (-20 percent, -100 jobs).

Association officials said the new February metro employment data, when compared to the recent survey results, demonstrates how quickly construction market conditions have deteriorated because of the coronavirus pandemic. They urged federal officials to begin crafting measures to support the post-pandemic recovery, including funding new infrastructure investments, compensating contractors for cancelled or delayed federal projects and supporting hard-hit pension plans many construction workers rely on for health and retirement benefits.

“The deterioration of the construction market in many parts of the country has been both swift and severe,” said Stephen E. Sandherr, the association’s chief executive officer. “Unless Washington officials begin crafting a comprehensive recovery plan that includes measures to help the industry, the industry will continue to suffer even after the pandemic passes.”

View AGC’s coronavirus and . View comparative data . View the metro employment , , , and .

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