Employment Situation in April: State-Level Analysis

2023-05-19T14:18:16-05:00

Nonfarm payroll employment increased in 36 states in April compared to the previous month, while 14 states and the District of Columbia lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 253,000 in April, following a gain of 165,000 jobs in March. On a month-over-month basis, employment data was strong in California, which added 67,000 jobs, followed by Texas (+33,300), and Florida (+21,200). Fourteen states and the District of Columbia lost a total of 39,000 jobs.  In percentage terms, employment in Indiana increased by 0.5% while Rhode Island reported a 0.8% decline between March and April. Year-over-year ending in April, 4.0 million jobs have been added, marking a more than full recovery of the labor market from the COVID-19 pandemic induced recession. Except for Rhode Island, all the other states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 534,600 jobs in Texas to 1,800 jobs added in West Virginia. In percentage terms, Nevada reported the highest increase by 4.2%, while Rhode Island decreased by 0.2% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 24 states reported an increase in April compared to March, while 24 states lost construction sector jobs. Washington added 4,300 construction jobs, while Texas lost 8,500 jobs. Overall, the construction industry added a net 15,000 jobs in April compared to the previous month. In percentage terms, South Dakota increased by 2.7% while Alaska reported a decline of 4.2% between March and April. Year-over-year, construction sector jobs in the U.S. increased by 205,000, which is a 2.7% increase compared to the April 2022 level. Texas added 28,000 jobs, which was the largest gain of any state, while California lost 5,100 construction sector jobs. In percentage terms, Arkansas had the highest annual growth rate in the construction sector by 9.8%. Over this period, West Virginia reported a decline of 3.7%. Related ‹ Custom Home Building ContractsTags: construction labor, economics, state and local markets, state employment

Employment Situation in April: State-Level Analysis2023-05-19T14:18:16-05:00

States with Highest and Fastest Rising Construction Wages

2023-04-27T14:31:11-05:00

Despite a housing market slowdown but reflecting persistent long-term labor challenges, wages in construction continue to rise, often outpacing and exceeding typical earnings in other industries.  According to the latest Current Employment Statistics (CES) report from the Bureau of Labor Statistics (BLS), average hourly earnings (AHE) in construction vary greatly across 43 states that reported these data. Some of the highest AHE are recorded by states in Northeast and along the Pacific coast. As of February 2023, ten states reported not seasonally adjusted average earnings in excess of $40 per hour, including Massachusetts – $45.9, New Jersey – $45.4, Illinois – $44.6, Alaska – $44.4, Washington – $44.2, New York – $43.6, California – $43, Rhode Island – $42, Oregon – $41.7, and Minnesota – $41.34. At the same time, not seasonally adjusted US average hourly earnings in construction were $35.9. At the other end of the spectrum are mostly Southern states with their vast majority reporting not seasonally adjusted average hourly earnings in construction under $31. The bottom ten states with the lowest AHE include seven states in the South. The lowest hourly wages are in neighboring Mississippi and Arkansas – $27.5, followed by South Carolina – $29.3, New Mexico – $29.4, West Virginia – $29.8, Kentucky – $30. Maine – $30.2, Oklahoma – $30.2, Idaho – $30.6, and Alabama – $30.7 conclude the bottom ten hourly wages in construction list. While differences in regional hourly rates might reflect variation in the cost of living across states, the faster growing wages are more likely to point out to specific labor markets that are particularly tight. Year-over-year, all but four states reported rising not seasonally adjusted hourly wages in February 2023. Seven states reported the increase in hourly rates of over 10% – Georgia (12.1%), Texas (11.5%), Idaho (11.4%), Wyoming (11.1%), Oregon (10.5%), Minnesota (10.4%), Alabama (10.3%). Remarkably, the list includes three southern states with AHE below the national average but rising rapidly and outpacing the national average growth of construction wages of 5.7%. On a monthly basis, the average hourly earnings grew fastest in Kentucky (2.4%), Arkansas (2.4%), and Michigan (2%). Related ‹ Share of FHA-Backed New Home Sales Climbs in Q1 2023Housing Availability Expectations See Mild Improvement ›Tags: average hourly earnings, construction, construction labor, home building, state differences

States with Highest and Fastest Rising Construction Wages2023-04-27T14:31:11-05:00

Employment Situation in March: State-Level Analysis

2023-04-27T15:21:12-05:00

Nonfarm payroll employment increased in 36 states and the District of Columbia in March compared to the previous month, while 14 states lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 236,000 in March, following a gain of 326,000 jobs in February. On a month-over-month basis, employment data was strong in Texas, which added 28,600 jobs, followed by New York (+18,100), and Massachusetts (+16,300). Fourteen states lost a total of 22,400 jobs.  In percentage terms, employment in Delaware increased by 0.5% while Alaska reported a 0.4% decline between February and March. Year-over-year ending in March, 4.1 million jobs have been added, marking a more than full recovery of the labor market from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 575,100 jobs in Texas to 2,000 jobs added in West Virginia. In percentage terms, Nevada reported the highest increase by 5.0%, while West Virginia increased by 0.3% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 19 states reported an increase in March compared to February, while 26 states lost construction sector jobs. Three states remained unchanged. Texas added 5,800 construction jobs, while California lost 8,200 jobs. Overall, the construction industry lost a net 9,000 jobs in March compared to the previous month. In percentage terms, Kentucky increased by 3.1% while Connecticut reported a decline of 2.9% between February and March. Year-over-year, construction sector jobs in the U.S. increased by 196,000, which is a 2.5% increase compared to the March 2022 level. Texas added 41,200 jobs, which was the largest gain of any state, while California lost 7,300 construction sector jobs. In percentage terms, Rhode Island had the highest annual growth rate in the construction sector by 11.9%. Over this period, West Virginia reported a decline of 7.5%. Related ‹ Market in Focus: Florida Has Highest Population Growth Rate In U.S.Lower Rates Spark Housing Demand ›Tags: construction labor, economics, state and local markets, state employment

Employment Situation in March: State-Level Analysis2023-04-27T15:21:12-05:00

Construction Self-Employment Rises Post Pandemic

2023-03-30T08:22:32-05:00

According to the 2021 American Community Survey (ACS), 23% (or close to 2.5 million) of workers employed in construction are self-employed. This is a whole percentage point higher than the share of self employed in construction in 2019, before the pandemic rattled the labor market. Even though the Covid-19 pandemic boosted self-employment across all industries, construction self-employment rates remain significantly higher than an economy-wide average of 10% of the employed labor force. Under normal circumstances, self-employment rates in construction are counter-cyclical, rising during the economic downturn and falling during the expansion. This presumably reflects a common practice among builders to downsize payrolls when construction activity is declining. Contrariwise, builders and trade contractors would offer better terms for employment and attract a larger share of pool of laborers to be employees rather than self-employed when workflow is steady and rising. The Covid-19 pandemic disrupted this natural cycle with self-employment rates rising during the post-pandemic housing boom.  The number of self-employed in construction approached 2.5 million in 2021, slightly exceeding the pre-pandemic levels, while the number of private payroll workers in construction remained slightly below the 2019 levels. As a result, the share of self-employed increased by a whole percentage point from 22% to 23%. It is likely that rising self-employment in construction reflects divergent trends within the industry – a faster V-shape recovery for home building and a slower delayed improvement for commercial construction that is less dependent on self-employed. It is also possible that some construction employees laid off during the Covid-19 recession of early 2020 were pushed into self-employment. Similarly, and consistent with economy-wide “Great Resignation” trends, some workers might have chosen self-employment because it offers more independence and flexibility in hours, pay, type and location of work. Given the widespread labor shortages in construction, securing a steady workflow was less of a concern for construction self-employed in post-pandemic times. Since the 2020 ACS data are not reliable due to the data collection issues experienced during the early lockdown stages of the pandemic, we can only compare the pre-pandemic 2019 and 2021 data (hence the omitted 2020 data in the chart above). As a result, it is not clear whether self-employed in construction managed to remain employed during the short Covid-19 recession or able to recover jobs faster afterwards, compared to private payroll workers.  It is also unclear whether the booming residential construction sector attracted self-employed from other more vulnerable or slow recovering industries, including commercial construction. The Quarterly Census of Employment and Wages (QCEW), that relies on the unemployment insurance accounting system in each state, provides data on employment and establishment counts throughout the pandemic. Even though self-employed are not covered by the QCEW, the survey reveals a shift in construction employment towards smaller size establishments.  As of January 2022, construction establishments with fewer than 50 employees were able to recover all jobs lost early in the pandemic and currently have larger payrolls than in January 2020 before the pandemic wreaked havoc on labor markets. At the same time, construction establishments with 500 or more employees have not reached their pre-pandemic employment levels, with payroll employment being 10% lower for establishments with 500-999 employees and 19% lower for the largest companies with 1,000 or more workers. Given the current record high top builder market share, a shift in construction employment towards smaller size establishments may seem puzzling but likely reflects substantial employment gains by residential construction firms and slower recovery in commercial construction. It also reflects strength in remodeling. Additional insights into construction self-employment rates can be gained by examining cross-state variation. Maine and Nevada constitute two opposites, with Maine registering the highest (38%) and Nevada showing lowest (10%) self-employment rates in construction. The substantial differences likely reflect a predominance of home building in Maine and a higher prevalence of commercial construction in Nevada. The New England states are where it takes longer to build a house.  Because of the short construction season and longer times to complete a project, specialty trade contractors in these states have fewer workers on their payrolls. The 2012 Economic Census data show that specialty trade contractors in Montana, Maine, Rhode Island, Vermont, Idaho, New Hampshire have the smallest payrolls in the nation with 5 to 6 workers, on average. The national average is close to 9 workers. As a result, a greater share of work is done by independent entrepreneurs, thus explaining high self-employment shares in these states, which matches the elevated shares of residential construction workers in these local labor forces. Related ‹ Property Tax Revenues See Largest Increase Since 2009Tags: construction, construction labor, economics, Great Resignation, home building, labor force, labor shortage, self employed in construction, state self-employment rates

Construction Self-Employment Rises Post Pandemic2023-03-30T08:22:32-05:00

Employment Situation in February: State-Level Analysis

2023-03-28T14:16:46-05:00

Nonfarm payroll employment increased in 44 states and the District of Columbia in February compared to the previous month, while five states lost jobs. Oklahoma remained unchanged. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 311,000 in February, following a gain of 504,000 jobs in January. On a month-over-month basis, employment data was strong in Texas, which added 58,200 jobs, followed by Florida (+38,800), and California (+32,300). Oregon, New Hampshire, Kansas, Arkansas, and Maryland lost a total of 8,600 jobs.  In percentage terms, employment in Utah increased by 0.6% while New Hampshire reported a 0.2% decline between January and February. Year-over-year ending in February, 4.3 million jobs have been added, marking a more than full recovery of the labor market from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 611,400 jobs in Texas to 2,500 jobs added in West Virginia. In percentage terms, Nevada reported the highest increase by 5.1%, while West Virginia increased by 0.4% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 24 states reported an increase in February compared to January, while 19 states lost construction sector jobs. Five states remained unchanged. California added 7,600 construction jobs, while Tennessee lost 1,700 jobs. Overall, the construction industry added a net 24,000 jobs in February compared to the previous month. In percentage terms, Rhode Island increased by 1.7% while Iowa reported a decline of 1.9% between January and February. Year-over-year, construction sector jobs in the U.S. increased by 249,000, which is a 3.2% increase compared to the February 2022 level. Texas added 37,900 jobs, which was the largest gain of any state, while West Virginia lost 2,200 construction sector jobs. In percentage terms, Rhode Island had the highest annual growth rate in the construction sector by 12.4%. Over this period, West Virginia reported a decline of 6.5%. Related ‹ Consumer Confidence Increased Slightly in MarchTags: construction labor, economics, state and local markets, state employment

Employment Situation in February: State-Level Analysis2023-03-28T14:16:46-05:00

Employment Situation in January: State-Level Analysis

2023-03-13T17:21:54-05:00

Nonfarm payroll employment increased in 48 states and the District of Columbia in January compared to the previous month, while Wyoming and Rhode Island lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 504,000 in January, following a gain of 260,000 jobs in December. On a month-over-month basis, employment data was strong in California, which added 96,700 jobs, followed by Texas (+48,600), and Florida (+30,000). Wyoming and Rhode Island lost a total of 1,100 jobs. In percentage terms, employment in Arizona increased by 0.7% while Rhode Island reported a 0.1% decline between December and January. Year-over-year ending in January, 4.9 million jobs have been added, marking a more than full recovery of the labor market from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 654,100 jobs in Texas to 3,400 jobs added in West Virginia. In percentage terms, Nevada reported the highest increase by 6.0%, while West Virginia increased by 0.5% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 40 states reported an increase in January compared to December, while seven lost construction sector jobs. Mississippi remained unchanged. Indiana added 6,700 construction jobs, while California lost 7,300 jobs. Overall, the construction industry added a net 35,000 jobs in January compared to the previous month. In percentage terms, Iowa increased by 4.7% while West Virginia reported a decline of 1.8% between December and January. Year-over-year, construction sector jobs in the U.S. increased by 304,000, which is a 4.0% increase compared to the January 2022 level. Texas added 34,800 jobs, which was the largest gain of any state, while West Virginia lost 1,600 construction sector jobs. In percentage terms, Montana had the highest annual growth rate in the construction sector by 12.7%. Over this period, West Virginia reported a decline of 4.8%. Related ‹ Job Gains Continue in February Amid Mixed SignalsTags: construction labor, economics, state and local markets, state employment

Employment Situation in January: State-Level Analysis2023-03-13T17:21:54-05:00
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