Sacramento construction employment thrives, SF slumps as nation feels the impact of COVID-19

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Construction employment in the Sacramento area increased by 4% in the past 12 months, making it one of the most successful areas of the country despite losses elsewhere because of the COVID-19 pandemic.

The Sacramento–Roseville–Arden-Arcade market area gained 31,000 jobs in the 12 months between February 2020 and February 2021. The 4% gain to 73,700 jobs contrasts with a 12% decline in San Francisco and 5% in Los Angeles, according to US Department of Labor data compiled by the Associated General Contractors (AGC) of America.

In detail, here is the data for California by region, industry, employment in Feb. 2020, Feb. 2021, net gain/loss and percentage change.

  • Statewide Construction 891,900 859,600 -32,300 -4%
  • Statewide Mining, Logging, and Construction 913,500 877,400 -36,100 -4%
  • Anaheim-Santa Ana-Irvine Div. Construction 106,600 101,600 -5,000 -5% 210
  • Bakersfield Construction 16,200 14,200 -2,000 -12% 313
  • Chico  Mining, Logging, and Construction 4,400 3,900 -500 -11% 303
  • El Centro Mining, Logging, and Construction 2,000 1,600 -400 -20% 349
  • Fresno Construction 19,200 17,800 -1,400 -7% 247
  • Hanford-Corcoran Mining, Logging, and Construction 900 1,000 100 11% 6
  • Los Angeles-Long Beach-Glendale Div. Construction 153,400 145,200 -8,200 -5% 210
  • Madera Mining, Logging, and Construction 2,000 1,900 -100 -5% 210
  • Merced Mining, Logging, and Construction 2,700 2,500 -200 -7% 247
  • Modesto Mining, Logging, and Construction 10,100 9,700 -400 -4% 181
  • Napa Mining, Logging, and Construction 4,400 4,100 -300 -7% 247
  • Oakland-Hayward-Berkeley Div. Construction 75,400 73,100 -2,300 -3% 157
  • Oxnard-Thousand Oaks-Ventura Construction 17,200 16,300 -900 -5% 210
  • Redding Mining, Logging, and Construction 4,000 3,600 -400 -10% 293
  • Riverside-San Bernardino-Ontario Construction 108,900 108,400 -500 -0.5% 124
  • Sacramento–Roseville–Arden-Arcade Construction 70,600 73,700 3,100 4% 31
  • Salinas Construction 6,600 6,300 -300 -5% 210
  • San Diego-Carlsbad Construction 84,000 85,600 1,600 2% 53
  • San Francisco-Redwood City-South San Francisco Div.Construction 46,400 40,700 -5,700 -12% 313
  • San Jose-Sunnyvale-Santa Clara Construction 53,200 49,600 -3,600 -7% 247
  • San Luis Obispo-Paso Robles-Arroyo Grande Mining, Logging, and Construction 8,500 8,000 -500 -6% 231
  • San Rafael Div. Construction 7,600 7,200 -400 -5% 210
  • Santa Cruz-Watsonville Mining, Logging, and Construction 4,600 4,400 -200 -4% 181
  • Santa Maria-Santa Barbara Construction 9,100 8,400 -700 -8% 269
  • Santa Rosa Construction 16,700 15,300 -1,400 -8% 269
  • Stockton-Lodi Construction 13,300 12,500 -800 -6% 231
  • Vallejo-Fairfield Construction 11,900 10,200 -1,700 -14% 331
  • Visalia-Porterville Mining, Logging, and Construction 6,500 6,300 -200 -3% 157
  • Yuba City Mining, Logging, and Construction 2,800 2,400 -400 -14% 331

AGC says construction employment decreased from February 2020 to February 2021 in 236 of the nation’s metro areas, amid project cancellations, rising material prices and supply chain problems. Association officials said that the industry will struggle to add jobs in the future if a series of proposed new labor laws, including the PRO Act, were to be put into law by the current Congress and administration.

“Relatively few places have recovered from the pandemic-induced impacts on the construction industry,” said Ken Simonson, the association’s chief economist. “Project cancellations, spiking materials prices and significant supply chain challenges are making it hard for most firms to add new construction jobs compared to a year ago.”

Houston-The Woodlands-Sugar Land, Texas lost the largest number of construction jobs over the 12-month period (-37,600 jobs, -16 percent), followed by New York City (-26,700 jobs, -17 percent); Chicago-Naperville-Arlington Heights, Ill. (-12,900 jobs, -11 percent) and Midland, Texas (-11,600 jobs, -31 percent). Odessa, Texas had the largest percentage decline (-40 percent, -8,200 jobs), followed by Lake Charles, La. (-39 percent, -7,700 jobs); Midland; Longview, Texas (-23 percent, -3,400 jobs) and Laredo, Texas (-23 percent, -900 jobs).

Only 83 metro areas added construction jobs during the past 12 months, while construction employment was stagnant in 39 metro areas. Sacramento–Roseville–Arden-Arcade, Calif. added the most construction jobs over 12 months (3,100 jobs, 4 percent), followed by Seattle-Bellevue-Everett, Wash. (2,800 jobs, 3 percent); Ogden-Clearfield, Utah (2,800 jobs, 14 percent) and Boise, Idaho (2,700 jobs, 10 percent). Sierra Vista-Douglas, Ariz. had the highest percentage increase (40 percent, 1,000 jobs), followed by Cleveland, Tenn. (16 percent, 300 jobs); Lawrence-Methuen Town-Salem, Mass.-N.H. (15 percent, 500 jobs) and St. George, Utah (15 percent, 1,300 jobs).

Association officials cautioned that federal officials are considering a host of measures that will not only undermine proposed new infrastructure investments, but also make it harder for firms to add new employees. Foremost among those challenges are the PRO Act, which would unleash a new wave of labor instability. The measure would likely lead to a host of new strikes and jobsite disruptions that will make it hard for firms to add new employees.

“It will be hard for firms to add new employees if they have no idea whether the jobs they are working on will be shut down because of the wide range of labor actions encouraged by the PRO Act,” said Stephen E. Sandherr, the association’s chief executive officer. “New infrastructure investments will certainly help the industry, but our members won’t be able to build back better if the work is mired in labor uncertainty.”

View the metro employment 12-month , , , , and .

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