Steep monthly declines in public and private nonresidential construction spending offset a surge in homebuilding in July, while industry employment decreased compared to July 2019 levels in two-thirds of the nation’s metro areas, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said many commercial construction firms were likely to continue shedding jobs without needed federal coronavirus relief measures.
California and New Mexico Have Worst One-Month Job Losses While New York Has Largest Increases; California and Vermont Post Worst Yearly Declines as Utah and South Dakota Have Largest Gains
Gains in July are Limited to Residential Side as State and Local Governments and Private Owners Postpone And Cancel Upcoming Projects; Association Urges Prompt Federal Action to Make up for Revenue Losses
New York City and Brockton-Bridgewater-Easton, Mass. Have Worst 12-Month Losses, While Austin and Walla Walla, Wash. Top Job Gainers; 81 Percent of Metros Add Construction Jobs from May to June
On June 17, the U.S. Small Business Administration and the Department of the Treasury released a revised Paycheck Protection Program (PPP) loan forgiveness application, implementing the fixes from the AGC-backed Paycheck Protection Program Flexibility Act enacted June 5. The agencies also released a streamlined “EZ version” of loan forgiveness application that may be used in limited circumstances. The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form. Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan. AGC continues to press for improvements to the PPP and will provide further updates as they develop.
Gains in May Reflect Temporary Support from Paycheck Protection Program Loans and Easing of Construction Restrictions, But Hobbled Economy and Tight State and Local Budgets Risk Future Job Losses
New York City Has Largest Job Loss, Montgomery-Bucks-Chester County, Pa. Has Worst Percentage Loss As Coronavirus Pandemic Drives Rampart Decreases in a Month When Industry Typically Adds Employees
On March 25, the Senate passed, 96-0, H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It is expected to be taken up by the House of Representatives soon. The CARES Act, a $2 trillion economic relief package, is the third in a series of coronavirus related measures Congress has taken up in recent weeks to address the pandemic sweeping the country. This legislation encompasses a host of provisions that will provide construction employers and employees with critically needed access to capital, expedited cash-flow, worker benefit protection, and critical tax relief, among other things. While this bill is appreciated, due to the unparalleled uncertainty this pandemic has brought, AGC recommended to Congress further measures that must be taken to safeguard the construction industry from the effects of this outbreak.
Coronavirus-caused Slowdown Contrasts with January Figures Showing a Majority of Metro Areas Added Construction Jobs; Officials Note New Infrastructure Funding and Paid Family Leave Fixes are Needed