Construction employment gained 464,000 jobs in May, according to the Associated General Contractors of America (AGC).
However, total construction employment remains 596,000 jobs below the latest peak in February, AGC says. In addition, the industry’s 12.7 percent unemployment rate was the highest for May since 2012, according to an analysis of government data by AGC.
“The huge pickup in construction employment in May is good news and probably reflects the industry’s widespread receipt of Paycheck Protection Program loans and the loosening of restrictions on business activity and in some states,” says Ken Simonson, chief economist at AGC. “Nevertheless, the industry remains far short of full employment, and more layoffs may be imminent.”
AGC officials cautioned that future job losses are likely as temporary federal support programs end, state and local officials work with reduced budgets, and private sector demand declines.
Simonson noted that AGC’s latest survey found that nearly 25 percent of contractors reported a project that was scheduled to start in June or later had been canceled.
May’s rebound of 464,000 jobs added comes on the heels of 995,000 job losses in April and 65,000 in March, according to AGC, for a cumulative loss of 596,000 jobs. According to Simonson, construction employment totaled 7,043,000 in May – about the same as late 2017.
AGC officials also called for further federal investment to boost funding for the industry and prevent future job losses and project cancellations.
“Government officials have done a good job providing temporary relief for firms struggling to cope with the economic impacts of the pandemic,” says Stephen Sandherr, CEO at AGC. “As those temporary supports end, the broader economic realities of the lockdowns will cost countless construction jobs unless Congress and the administration can work together to enact measures to revive the economy.”