WASHINGTON, D.C. — June 27, 2025 — Construction employment posted annual gains in a majority of U.S. states in May, though growth remains uneven as contractors navigate ongoing federal policy uncertainty. According to the Associated General Contractors of America (AGC), 33 states and the District of Columbia saw year-over-year increases, while 27 states added jobs between April and May.

“Construction has been in a holding pattern for several months, with gains in a small majority of states,” said Ken Simonson, chief economist at AGC. “Uncertainty over tariffs, immigration, federal funding, taxes and other policy shifts is causing many types of projects to be put on hold across the country.”

Between May 2024 and May 2025, job growth was strongest in Texas, which added 28,600 construction jobs (3.4%), followed by Ohio (17,000 jobs, 6.9%), Michigan (10,400 jobs, 5.3%), Florida (9,900 jobs, 1.5%), and New Mexico (9,100 jobs, 17.2%). New Mexico also led in percentage growth, trailed by Idaho (10.1%), Kentucky (7.1%), West Virginia (7.1%), and again Ohio.

Conversely, California recorded the largest 12-month job loss, shedding 13,800 jobs (-1.5%), followed by Washington (-11,200 jobs, -5.0%), New York (-6,800 jobs, -1.7%), New Jersey (-4,600 jobs, -2.8%), and Massachusetts (-4,000 jobs, -2.3%). Washington led in percentage loss, followed by New Jersey, Massachusetts, Oregon (-2.3%), and Arkansas (-2.2%).

Short-term monthly gains also showed momentum in certain regions. Between April and May, Michigan added the most jobs (4,300, or 2.1%), followed by Washington (3,100 jobs, 1.5%), Missouri (2,200 jobs, 1.5%), Texas (2,200 jobs, 0.3%), and New Mexico (1,600 jobs, 2.6%). The biggest percentage increases occurred in Montana (3.9%), Alaska (3.8%), New Mexico, Michigan, and Idaho (1.7%).

However, other states saw steep losses in the same period. Virginia and California each lost 1,900 jobs, while Oregon (-1,700 jobs, -1.5%), Georgia (-1,400 jobs, -0.6%), and Minnesota (-1,100 jobs, -0.8%) also posted declines. Vermont experienced the sharpest percentage drop at -1.9%, followed by Oregon, Arkansas (-1.4%), Rhode Island (-1.3%), and Virginia.

AGC officials emphasized that while the industry is adding jobs, continued ambiguity from Washington is slowing investment.

“The more certainty Washington can provide about taxes, tariffs and labor policy, the more likely developers are to come off the sidelines and start delayed projects,” said Jeffrey Shoaf, AGC’s CEO.

The association is urging Congress and the Biden administration to finalize pending tax legislation, clarify immigration enforcement priorities, and resolve trade disputes that have led to rising material costs. These steps, AGC argues, would create a more stable environment for private investment and public infrastructure development.

The report illustrates the fragile momentum of the construction sector, with regional economic factors, labor availability, and state policy differences influencing hiring rates. While the overall trend remains positive, industry leaders warn that federal inaction could undermine further recovery, especially in states where employment has recently dipped.

Originally reported by Window and Door.