The fast-worsening Covid-19 pandemic has triggered layoffs at more than a quarter of US construction firms responding to an online survey released last week by the Associated General Contractors of America. The finding contrasts with the government’s monthly employment report for March, which found that construction employment declined by 29,000 as of mid-March.
“The March employment data does a better job reflecting market conditions before the pandemic than it does the widespread disruptions that have occurred during the past few weeks,” said Ken Simonson, the association’s chief economist. He noted that the federal employment figures are based on payrolls as of March 12, when relatively few states or individual owners had directed contractors to stop work. “Our survey, meanwhile, indicates rapidly deteriorating labor and market conditions for the construction sector.”
Simonson added that 27 percent of respondents to the survey reported that they have furloughed or terminated construction workers. In addition, 59 percent of respondents in the latest survey reported a variety of problems causing project delays or disruptions, compared to 45 percent the previous week. The most common source of delay or disruption, cited by 35 percent of respondents, was shortages of material, parts and equipment, including vital personal protective equipment for workers such as respirators. Twenty-eight percent reported shortages of craftworkers, while 16 percent said projects were delayed by shortages of government workers needed for inspections, permits and other actions.
“We are just beginning to appreciate the severity of the economic impacts of the pandemic for construction workers and their employers,” said Stephen E. Sandherr, the association’s chief executive officer. “Washington officials have an opportunity, however, to use the construction industry as the vehicle for rebuilding our economic once the pandemic passes.”