New York lost many construction jobs during the pandemic — and still hasn’t recovered: report

New York State hasn’t recovered all of the construction lobs it lost during the pandemic shutdown – partly because of less demand for office space, a new report released Thursday said.

There is 16,300 fewer construction jobs in the Empire State, 4% lower than before the COVID-19 shutdown — the second lowest recovery among all states, according to the the study by state Comptroller Tom DiNapoli’s office.

“Spending on residential construction has rebounded since the pandemic, but nonresidential construction spending, especially in New York City, remains below 2019 levels and could continue to lag in the near future,” DiNapoli said.

The sector would have fully recovered if not for New York City, where hard hat employment last year was still down 11.3%, or 18,200 jobs compared 2019.

Meanwhile, the number of construction firms declined by 3% in 2024, the first drop since 2011, the report said.

Nonresidential construction plummeted 43% during the COVID-19 outbreak in 2020, according to the New York Building Congress, a construction trade group.

Demand still remains below 2019 pre-pandemic levels.

“Non residential construction has improved but continues to be impacted by remote work policies,” the comptroller’s report said.

New York is one of five states that have not recovered from pandemic job losses in the construction sector, report said.

Aside from remote work softening the office construction market, DiNapoli’s report said President Trump’s immigration enforcement could impact the hard hat labor force and ongoing projects.

Immigrants held 61% of the jobs in the construction sector in the city in 2023, a much higher share than in the rest of the state and the nation.