Aug 8, 2023 | Bakersfield, Employment, Features

4.65% Of All Bakersfield Jobs Are in the Construction Industry, Below U.S. Average

The Great Recession left a lasting impact on the American economy, especially in the housing market. The subprime mortgage crisis, which ravaged the housing industry from 2007 to 2010, resulted in the widespread devaluation of residential homes and discouraged builders from investing in new housing construction. As a consequence, the number of new housing construction starts plummeted, and the repercussions of the recession continue to be felt in the construction industry to this day.

Despite these challenges, construction workers remain a crucial component of the American workforce, driving economic growth through their work in essential sectors. Their efforts serve as a foundation for initiatives such as expanding the supply of residential housing and investing in competitive American manufacturing. By building the houses, buildings, and infrastructure necessary to achieve these goals, construction workers contribute significantly to the country’s economic development.

Even though more than 10 years have passed since the Great Recession, the share of employment in the construction sector is still below pre-recession levels. Construction jobs took a nosedive in the wake of the housing market crash in 2008, but did not feel the full effects until January 2011 when the share of total employment reached a 30-year low of only 4.15%.

Since then, however, employment in construction has grown. Prior to the brief spike during the COVID-19 pandemic—when many construction professionals were considered essential workers and most other workers faced mass unemployment—the share of total employment in the construction industry rose steadily. But with the onset of widespread inflation and other economic challenges, the share of construction employment has remained flat, and as of June 2023, it sits at 5.09%.

Not only do these trends impact the laborers and trades workers commonly associated with the construction industry, but also the diverse range of professionals that support, manage, and employ those workers. While laborers and specialty contractors do account for most construction industry jobs, other common roles include general managers (3.3% of total construction industry employment), office clerks (3.2%), construction managers (3.2%), project managers (2.3%), secretaries and assistants (1.7%), and bookkeepers (1.7%).

Employment in construction is also unevenly distributed across the country. States in the Mountain West—like Utah (8.00%), Wyoming (7.88%), Idaho (7.86%), Montana (7.68%), and Nevada (7.15%)—are the most reliant on construction industry jobs, with employment in the construction industry all above 7% of total. This trend also holds true at the metropolitan level: the Mountain West is home to four large metros that rank within the top 10 for the largest concentration of construction industry workers.

Some point to the combination of the region’s business-friendly tax and regulatory environment with the renewed effort to reshore critical industries as a key driver of manufacturing-related construction in the area. However, it’s important to recognize that the region’s rapid population growth has played a significant role in the proliferation of construction firms and related job opportunities. The increasing number of residents has fueled demand for new housing and infrastructure projects, thus driving the high concentration of construction activity in the Mountain West.

The data used in this analysis is from the U.S. Bureau of Labor Statistics. To determine the locations with the most construction industry jobs, researchers at Construction Coverage, a website that provides construction insurance guides, calculated the percentage of total employment in the construction sector in Q4 2022, the latest data available. In the event of a tie, the location with the greater total number of construction industry employees was ranked higher.

The analysis found that 4.65% of jobs in the Bakersfield metro area are in the construction industry, 0.6 percentage points lower than the national concentration. Here is a summary of the data for the Bakersfield, CA metro area: