Construction Employment Rebounds After Historic Job Loss
April 2020 was not kind to the construction industry. The month of April saw the industry lose over half a million jobs. Although this is an incredible loss, May’s employment numbers show that the industry is already well on its way to recovering. In this brief article, we discuss the record-breaking number of jobs added to the construction industry in May 2020 and what it means for the future of the industry. If you are concerned with your company’s future, a Jacksonville construction attorney can assist you.
Over 400,000 Jobs Added in May
As reported by Associated Builders and Contractors, nonresidential construction employment lost well over 500,000 on net in April — the industry’s largest month-over-month job loss. However, many of those jobs returned in May, which saw 237,000 net new nonresidential jobs added to the industry. All three nonresidential segments — nonresidential building, nonresidential specialty trade contractors, and heavy and civil engineering — showed job gains.
The industry's 464,000 new jobs in May mark the largest monthly increase in construction jobs since 1939 when the government began tracking employment. The construction unemployment rate falling to 12.7 percent is yet another reason to celebrate. Although unemployment is up compared to the same time last year, these numbers show that the industry is already rebounding from the current economic crisis.
“For contractors, this is purely good news,” said ABC Chief Economist Anirban Basu. “With the economy beginning its recovery sooner and more dramatically than anticipated, fewer projects are likely to be postponed or canceled.” That’s good news indeed. As a result of the coronavirus pandemic, the industry is seeing widespread delays and cancellations, which has, in part, led to April’s job loss. Delays and cancellations can also lead to costly disputes for parties swept up in complications caused by the pandemic. Consult our Jacksonville construction attorneys if you’re concerned that labor shortages, delays, or cancellations, will cause a dispute on your jobsite.
At Cotney Attorneys & Consultants, we couldn’t be happier with the industry’s job growth following such a historic loss. However, it’s our duty to look ahead at the challenges still facing the construction industry. In the coming months, the industry will continue to face labor shortages, safety concerns, and project delays and cancellations, among countless other obstacles, especially as fears of a coronavirus second wave grow.
To protect your company and your workers, consider partnering with an attorney from our construction law firm. Our on-demand attorneys can provide you with round-the-clock protection from legal threats while setting your company up for success with our affordable, unlimited services. For an ally who will protect your company from legal threats related to the pandemic or otherwise, partner with a lawyer Cotney Attorneys & Consultants.
If you would like to speak with a Jacksonville construction attorney, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.