Construction Jobs Continue To Decline In Cities

The following report is from the Trends Journal:

Despite a boom in home remodeling, more than half of U.S. major metro areas lost construction jobs in 2020, the Associated General Contractors of America (AGCA) has reported.

Jobs were lost in 191 of 358 areas or 53%.

Houston, New York City, and Midland, TX lost the most; Indianapolis, northern Virginia, and Seattle added the most jobs in building.

Private non-residential construction declined 10% last year compared to 2019, and government-related building projects have been sliding since March, the AGCA noted.

The new year has begun no better for the building trades.

A dearth of new construction work is forcing more and more contractors to lay off workers once they complete projects started before the pandemic hit.

Ken Simonson. AGCA’s Chief Economist

The building trades lost a net 3,000 jobs in January, bringing the deficit to 256,000 fewer workers than a year ago, the AGCA’s latest report shows.

Home builders have regained all of the jobs lost last year; however, nonresidential construction – mostly commercial and government buildings and infrastructure projects – are still 259,000 jobs short of February 2020’s total. 

The construction industry marked a 9.4-percent unemployment rate last month, the AGCA said.

The building trades lost a net 3,000 jobs in January, bringing the deficit to 256,000 fewer workers than a year ago, the AGCA’s latest report shows.

Home builders have regained all of the jobs lost last year; however, nonresidential construction – mostly commercial and government buildings and infrastructure projects – are still 259,000 jobs short of February 2020’s total. 

The construction industry marked a 9.4-percent unemployment rate last month, the AGCA said.

TREND FORECAST: We maintain our forecast for continuing residential construction as long as interest rates remain low… and move lower, and the cheap government money continues to artificially prop up the economy. The commercial sector, however, will continue to decline.

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AUTHOR COMMENTARY

As the Trends Journal has reported, because people are staying home more they are investing in home repairs and renovations. What we are seeing is a repeat of the events leading up to the Great Recession. Homeowners are using their homes as an ATM and refinancing their homes. House prices are continuing to rise. When the “everything bubble” in the markets pop, it will be an indescribable nightmare.

There are pockets of growth in some areas, and others they continue to suffer. When the markets finally start to correct and the economy goes apocalyptic, home repair and new construction will be the least of things on the masses minds. Pay attention to what unfolds in these avenues. If you are in this field, I suggest you learn and adapt to be flexible with the massive shakeup that is looming around the bend.

[10] And indeed ye do it toward all the brethren which are in all Macedonia: but we beseech you, brethren, that ye increase more and more; [11] And that ye study to be quiet, and to do your own business, and to work with your own hands, as we commanded you; [12] That ye may walk honestly toward them that are without, and that ye may have lack of nothing.

1 Thessalonians 4:10-12

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