A survey conducted by the Associated General Contractors of America (AGC) found that 40% of construction firms reported having to lay off employees due to the economic downturn caused by the COVID-19 crisis.
The survey was conducted April 6–9. The number of firms reporting layoffs is an increase from an AGC survey conducted at the end of March, in which 27% of firms reported layoffs.
Seventy-four percent of respondents to the latest AGC survey reported they were seeking Paycheck Protection Programs (PPP) loans. However, only 10 percent reported they had already received a loan through the program, which began on April 3, according to AGC.
“Owners are not only halting many current construction projects but are canceling a growing number of projects that have not yet started,” AGC Chief Economist Ken Simonson stated. “Inevitably, that has caused a growing number of contractors to furlough or terminate jobsite workers.”
Nearly 17 million people have applied for unemployment benefits over the last three weeks, according to Forbes.
