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With jobs dropping 37 percent during the coronavirus pandemic, the construction industry in Southeast Massachusetts has been one of the hardest-hit areas in the nation, according to a new survey from the Associated General Contractors of America using U.S. Census Bureau data.
Construction employment decreased in 225 out of 358 metro areas between June 2019 and last month despite widespread increases from May to June, according the AGCA. Association officials urged government officials to enact liability reform, boost infrastructure investments and extend tax credits to help the industry recover and rebuild in a statement accompanying the data release.
New York City lost the most construction jobs over 12 months (-38,200 jobs, -24 percent) despite having the largest gain from May to June. The Brockton-Bridgewater-Easton area had the largest percentage decline: -37 percent (-2,200 jobs). Austin-Round Rock, Texas added the most construction jobs from June 2019 to June 2020: 4,100 jobs (6 percent). Walla Walla, Washington had the highest percentage increase: 27 percent (300 jobs).
From May to June – a month when construction employment typically increases in most metro areas, 291 metros added construction employees; 42 areas had a decrease; and employment was unchanged in 25 areas. New York City added the most construction jobs between May and June: 22,100 or 22 percent.
“It’s troubling to see construction employment lagging year-ago levels in most locations, in spite of a strong rebound in May and June,” Ken Simonson, the association’s chief economist, said in a statement. “Those gains were not enough to erase the huge losses in March and April. Many indicators since the employment data were collected in mid-June suggest construction employment will soon decline, or stagnate at best, in much of the country.”
Simonson added that construction employment was stagnant in 39 metro areas and increased in only 94 areas (26 percent) over the past 12 months. Eighteen metros had all-time lows for June construction employment, while 28 areas had record highs for June, in data going back to 1990 for most areas.
Statewide, Massachusetts has seen 22,800 construction jobs disappear between June 2019 and June 2020, a 14 percent decline, despite seeing an 18 percent jump in construction jobs from May to June of this year.
Those gains from May to June were significant in areas across the state – 12,800 jobs gained in Greater Boston’s urban core, for example – but all metro areas continue to see employment levels in the construction industry that lag below pre-pandemic highs.
In Greater Boston’s urban core, the state’s largest employment center for the construction industry, 11,100 jobs disappeared between June 2019 and June 2020, a 15 percent drop. The Springfield area saw a similar percentage decline, with 1,800 jobs disappearing. Worcester saw 1,300 jobs vanish for an 11 percent drop in construction employment.
