ABC says state construction unemployment rates recede

Associated Builders and Contractors (ABC) reported that construction employment is holding its own but it is not back to pre-pandemic levels.

This is based on state-by-state analysis of U.S. Bureau of Labor Statistics data for March 2021. 

The data shows that on a year-over-year basis, the not seasonally adjusted construction unemployment rates rose nationally and in 33 states, fell in 15 states, and is unchanged in two states, Oklahoma and Washington.

National NSA construction employment was down 80,000 from March 2020. Seasonally adjusted construction employment remains 182,000, or 2.4%, below its February 2020 peak, before the impact of the COVID-19 pandemic began to influence employment numbers. This compares favorably to national SA nonfarm payroll employment, which was 5.5% below its February 2020 peak.

The national NSA construction unemployment rate went from 5.5% in February 2020 to 8.6% in March 2021, up 3.1%. Over that same period, 12 states had lower estimated NSA construction unemployment rates, 37 had higher rates and one (Utah) remained unchanged.

“The combination of better weather and vaccine availability is already improving the health of both the economy and the construction industry,” said Bernard M. Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Federal spending from the roughly $1.9 trillion American Rescue Plan Act is providing short-term support to the economy, helping to maintain an upward trajectory.”

In the longer term, there remains a need for repairs and upgrades to the nation’s aging infrastructure. If Democrats and Republicans in Congress can come to agreement on a plan that will benefit both the nation’s long-term economic growth prospects and the construction industry, that would further improve the employment outlook, according to Markstein.

The states with the lowest March 2021 estimated NSA construction unemployment rates in order from lowest to highest were:

1. Nebraska, 2%

2. Kansas and Utah (tie), 2.5%

4. North Carolina, 3.5%

5. Georgia, 3.6%

Three of these states were in the top five in February 2021—Georgia, North Carolina and Utah. Nebraska, which had the lowest construction unemployment rate among the states, had its lowest March rate on record. Kansas, which tied with Utah for the second-lowest rate, also had its lowest March rate on record. Georgia, with the fifth-lowest rate, posted its second-lowest March rate on record, behind its March 2019 3.3% construction unemployment rate.

The Bottom Five States

The states with the highest March 2021 estimated NSA construction unemployment rates in order from lowest to highest were:

46. Maine, 14.6%

47. New York, 15.7%

48. Alaska, 21.2%

49. Rhode Island, 22.6%

50. Hawaii, 28%

All of these states were in the bottom five in February except for Maine. The unemployment rate for Hawaii, which had the highest rate, is for construction, mining and logging combined.

More information regarding Associated Builders and Contractors state unemployment study is available here.