Construction employment declined in 20 states and Washington, D.C., in March, aligning with the results of a recent survey by the Associated General Contractors of America (AGC) that found growing layoffs amid new project cancellations and state funding constraints. Association officials warned that these cancellations mean massive job losses are likely to occur soon in even more states unless Congress helps cover rapidly declining state revenues, adds funding for Paycheck Protection Program loans and takes other measures to help the industry recover.

“While construction employment declined in many parts of the country last month, far more states, local governments and project owners have halted construction in the five weeks since the government collected this data,” says Ken Simonson, the association’s chief economist. “Our two latest surveys show a steep rise in cancellations of scheduled projects, which is leading to furloughs and terminations for both job-site and office workers.”

The association released an analysis of new government data that showed construction employment decreased in 20 states and the District of Columbia from February to March, held steady in six states, and increased in 24 states. The economist noted the figures represented a rapid deterioration in a previously vibrant job market for construction. Over the 12 months ending in March, construction employment declined in only seven states and D.C., held steady in two states, and increased in 41 states. He added that the data is based on employment as of March 12, before most states or owners began curtailing construction.

In the association’s latest online survey, conducted April 6-9, 53% of the 830 respondents reported that a project owner had ordered a halt or cancellation to a current or upcoming project. The share of respondents reporting cancellations jumped to 19% from 7% a week earlier, suggesting that the volume of work will shrink rapidly once current projects finish. Another impediment to construction — listed by 27% of respondents — comes from state and local officials who have ordered construction shutdowns.

The survey also found that 40% of respondents had furloughed or terminated workers by April 9, an increase from 31% just a week earlier. While 36% of firms reported furloughs or terminations of job-site workers, layoffs also affected office and other workers at 18% of firms.

Association officials warned that construction job losses were likely to accelerate in many states amid the coronavirus pandemic. View the state employment data, rankings, and highs and lows.

To read the entire release, visit www.agc.org.