Construction employment rebounded by 464,000 jobs in May, according to an analysis by the Associated General Contractors of America of government data. However, the total remained 596,000 below the latest peak in February and the industry’s 12.7% unemployment rate was the highest for May since 2012.

Association officials cautioned that the future job losses are likely as temporary federal support programs end, state and local officials deal with tighter budgets and private sector demand declines later this year.

“The huge pickup in construction employment in May is good news and probably reflects the industry’s widespread receipt of Paycheck Protection Program loans and the loosening of restrictions on business activity in some states,” said Ken Simonson, the association’s chief economist. “Nevertheless, the industry remains far short of full employment, and more layoffs may be imminent.

May’s construction-job gain followed losses of 995,000 in April and 65,000 in March, for a cumulative loss over three months of 596,000. Construction employment totaled about 7.0 million in May, about where it stood in late 2017.

The association’s latest survey found that nearly one-fourth of contractors reported a project that was scheduled to start in June or later had been canceled, Simonson noted. He added that with most states and localities starting a new fiscal year on July 1, even more public construction is likely to be canceled unless the federal government makes up for some of their lost revenue and unbudgeted expenses.