Arizona added more construction jobs than any other state over the past year, according to a new analysis of federal employment data released by the Associated General Contractors of America (AGC). The report shows continued strength in the state’s construction sector even as employment growth slows nationally amid funding and policy challenges.
Construction employment increased in 34 states and the District of Columbia between December 2024 and December 2025, while 15 states recorded job losses and employment remained unchanged in Maine. Over that 12-month period, Arizona emerged as the top state for construction job growth, underscoring the state’s ongoing demand for infrastructure, housing, and commercial development.
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Despite those annual gains, AGC officials cautioned that momentum weakened toward the end of the year. While 20 states and Washington, D.C., added construction jobs between November and December, 26 states experienced declines, reflecting growing uncertainty in the industry.
“Although a majority of states added construction employees over the year, employment has stalled in the latest month,” said Ken Simonson, the association’s chief economist. “Too many projects have been postponed or canceled due to lack of funding, financing costs, or policy uncertainty about tariffs and immigration enforcement.”
Nationally, Texas added the largest number of construction jobs over the year, gaining 15,700 positions, followed by North Carolina, Ohio, Missouri, and Illinois. Hawaii posted the strongest percentage growth, while Iowa, Idaho, West Virginia, and New Mexico also saw notable increases.
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At the other end of the spectrum, California recorded the steepest losses over the past 12 months, shedding nearly 20,000 construction jobs. New York, Washington, Nevada, and New Jersey also experienced significant declines, with Nevada posting the largest percentage drop.
On a month-to-month basis, Arizona again stood out. The state added 3,900 construction jobs from November to December, the largest numerical gain in the country. Wisconsin and Washington followed, while Montana posted the strongest percentage growth for the month.
However, not all states fared well at the end of the year. Minnesota experienced the sharpest monthly decline, losing nearly 10,000 construction jobs, with additional losses reported in California, Texas, Michigan, and Virginia.
AGC officials attributed much of the recent slowdown to reduced funding for highway and transportation projects. With the current federal surface transportation authorization set to expire on September 30, the association urged lawmakers to act quickly to provide clarity for contractors planning future hiring.
“Contractors need to know that highway funds will keep flowing before they can commit to hiring or retaining essential workers,” said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. “It’s imperative that the Trump administration and Congress provide that certainty by working now on the specifics of the next surface transportation bill.”
Industry leaders say Arizona’s continued job growth reflects strong underlying demand but warn that sustained progress will depend on predictable funding, stable policy conditions, and timely action from federal lawmakers.
Originally reported by AZ Big Media.
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