Project cancellations are forcing many construction firms to furlough or terminate employees, according to a new survey from the Associated General Contractors of America (AGC). The survey results support recent government data showing construction employment declined in the District of Columbia and every state except South Dakota in April.
The AGC's survey, conducted between May 18 and May 21, found nearly 70% of the 742 respondents have canceled or delayed projects since the outbreak of the coronavirus in early March. Nearly a quarter of respondents reported that projects they expected to start in June or later have been canceled. Over a quarter of respondents reported project delays or disruptions have been caused by a shortage of materials or a shortage of skilled laborers.
The survey indicated project cancellations forced 30% of firms to furlough or terminate employees. An equal share of construction firms reported adding workers, and 16% of firms anticipate adding employees in the next four weeks, according to the survey.
Over three-quarters of respondents reported they had applied for and received funds from the Paycheck Protection Program (PPP). However, the PPP benefits will end at the end of June unless Congress acts to extend the program.
Government data indicates that the construction industry lost 975,000 jobs between March and April, or 13% of the workforce nationwide. New York, a state with strong coronavirus-related restrictions on construction activity, experienced the largest construction job loss month-over-month, losing 166,200 jobs. Vermont, another state with heavy coronavirus regulations, experienced the largest percentage decrease in industry employment, losing 46.3% of its workforce between March and April. South Dakota was the lone state to see industry employment increase in April, with the state adding 500 jobs during the month.
"[The] state employment report shows how widespread—and deep—the job losses have been among construction workers, despite a smattering of new or accelerated projects," AGC chief economist Ken Simonson said in a news release.
