Construction Industry – August 27th

Construction Jobs

The employment in construction industry saw a 6% drop in April which reflects the substantial job loss among construction industry as a result of the pandemic. Project cancellations, equipment and materials shortage all led to the the decrease in construction jobs. Moderate growth was observed after May as local restrictions on construction work was gradually lifted.

Building Permits

Regional data on the number of new housing units authorized by building permits in the south is illustrated in the figure below. The pandemic outbreak led to a sharp decrease in April. The construction activity were shut down or operated under restrictive guidelines.

The full force of the pandemic also hit hard on Georgia building permits in April compared to 2019. Building permits started to increase from April lows as construction resumed gradually in some areas from May. The growth continued in June.

The South (Source: US Census Bureau)

Project Cancellations and Construction Layoffs

According to a survey conducted by Associated General Contractors of America (AGC) where 179 responses from companies located in the southern U.S. were collected, half respondents reported projects cancellation that were scheduled to start between June to August which left contractors struggling with business decisions. Another survey by AGC found that forty percent of construction firms reported layoffs in April. Project cancellation has caused a great number of loss in construction jobs.

Construction Spending at National Level

Construction spending decreases for fourth consecutive month till June as lagging-effects of the coronavirus. The decrease in private work outweighed the rise in public work in May. The pickup of public work in May faded as a drop of 1% occurred in June. The private-sector funding continued to remain below pre-coronavirus level as many owners incline to delay investment under the grim funding environment.

Photo of an undetermined Georgia Tech home game during the 1918 college football season. That's when the sport was hit by the Spanish flu and the end of World War I.

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