Houston’s building sector leads in job losses
Oil woes cited for biggest drop in construction work
Construction jobs in Houston and across the country are becoming more scarce as public agencies and private owners become hesitant about starting new projects during the pandemic, according to an analysis from the trade group Associated General Contractors of America.
The Houston region lost 2,500 or 9 percent of construction jobs from November 2019 to November 2020 — more than any other metro in the country. New York City, which lost 16,700 jobs, and Midland, shedding 9,800 jobs or 25 percent of construction jobs, followed.
The Houston construction industry has likely been left much weaker than other parts of other parts of the country, said Ken Simonson, the trade group’s chief economist. He said the downturn in the oil and gas industry has likely played a role in the suppressed demand for construction workers.
Houston also has a large health care sector, which took a large hit as hospitals scaled back on nonelective procedures during the pandemic, Simonson said. This could have led to certain projects being put off in those industries.
But Houston’s growing population and di-
versified economy could help in recover more quickly, Simonson said.
Only 34 percent of the nation’s metro areas—just over one-third—added construction jobs from November 2019 to November 2020, according to an analysis of government data.
Officials of the Associated General Contractors said large numbers of construction companies have laid off workers after completing projects begun before the pandemic and finding few new projects getting underway with the uncertain outlook.
“Canceled and postponed projects appear to be more common than new starts for far toomany contractors,” said Simonson.
The association’s 2021 Construction Hiring and Business Outlook Survey found three times more contractors have experienced postponements and cancellations than new or expanded projects. As long as the coronavirus induced recession continues, major metro areas will continue to lose construction jobs, said Stephen E. Sandherr, the association’s chief executive officer.
“Construction employment is likely to fall further in many parts of the country as the coronavirus continues to weigh on demand for nonresidential projects,” Sandherr said. “Unless market conditions change rapidly, this year is likely to prove very challenging formany construction employers.”