Arizona recorded the largest month-over-month decline in construction employment in the nation, even as many other states continued to add jobs amid uneven market conditions, according to new federal employment data analyzed by the Associated General Contractors of America (AGC).
Nationally, construction employment increased in 32 states and the District of Columbia over the past 12 months, while 26 states and D.C. added jobs between October and November, highlighting a mixed but resilient labor market. AGC officials said the uneven pattern mirrors the findings of the group’s forthcoming 2026 Construction Hiring and Business Outlook, scheduled for release Thursday.
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“Soaring demand for data centers, power, and selected other segments is adding to construction employment in some states,” said Ken Simonson, the association’s chief economist. “But uncertainty over tariffs and other policy shifts is causing many owners elsewhere to hold back on projects, leading contractors to trim their headcount.”
From October to November, Arizona lost 2,900 construction jobs, a 1.3% decline, the largest numerical drop among all states. Alabama followed with a loss of 2,300 jobs (-2.0%), while New York shed 2,100 jobs (-0.6%). New Jersey and Florida each lost approximately 2,000 jobs during the month.
In percentage terms, Alabama recorded the steepest monthly decline, followed by Montana (-1.9%), South Dakota (-1.9%), and Nevada (-1.6%).
Looking at the 12-month period from November 2024 to November 2025, 32 states and Washington, D.C., added construction jobs, while 18 states experienced net losses.
Texas led the nation with 24,000 new construction jobs (2.8%), followed by North Carolina (14,500 jobs, 5.3%), Ohio (12,600 jobs, 5.0%), Minnesota (10,900 jobs, 7.8%), and Michigan (10,400 jobs, 5.3%). Iowa posted the largest percentage increase, with employment rising 9.9%, or 8,100 jobs.
Conversely, New York recorded the largest annual loss, shedding 18,100 construction jobs (-4.6%), followed by California (-15,900 jobs, -1.6%), New Jersey (-12,500 jobs, -7.5%), Washington (-10,700 jobs, -4.8%), and Nevada (-8,200 jobs, -7.3%). New Jersey experienced the largest percentage decline over the year.
Despite Arizona’s decline, 26 states and D.C. added construction jobs in November, while employment was unchanged in Maryland, Nebraska, and Oregon.
Minnesota added the most jobs for the month with 3,200 positions (2.2%), followed by Missouri (3,100 jobs, 2.1%) and California (2,400 jobs, 0.3%). Idaho posted the strongest percentage gain, with construction employment rising 2.3%, or 1,800 jobs.
AGC officials said they will release their full 2026 Construction Hiring and Business Outlook during a virtual media briefing at 1 p.m. Eastern on Thursday, January 8. The report will assess contractor expectations for construction demand, workforce needs, and the impacts of tariffs and enhanced immigration enforcement over the past year.
“The outlook we are releasing tomorrow provides insight into how construction contractors are feeling about the coming year,” said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. “Despite optimism about certain segments, there are a number of challenges ahead that have contractors worried.”
The report is expected to shed further light on whether recent job losses in states like Arizona represent short-term volatility or a broader shift tied to policy uncertainty and financing constraints.
Originally reported by AZ Big Media.
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