Construction Employment Rises in Most States, But Policy Questions Stall Projects

Construction employment increased in 33 states and the District of Columbia between May 2024 and May 2025, and in 27 states from April to May 2025, according to a new Associated General Contractors of America (AGC) analysis of federal data released this week. Still, lingering policy uncertainty has muted more widespread gains.

“Construction has been in a holding pattern for several months, with gains in a small majority of states,” said Ken Simonson, AGC’s chief economist. “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.”

Texas led the nation in new construction jobs over the 12-month period with 28,600 jobs added (a 3.4% increase), followed by Ohio (+17,000 jobs, 6.9%), Michigan (+10,400 jobs, 5.3%), Florida (+9,900 jobs, 1.5%), and New Mexico, which recorded the highest percentage gain at 17.2% (+9,100 jobs).

Other top performers included Idaho (10.1%), Kentucky (7.1%), and West Virginia (7.1%).

In contrast, California lost the most jobs over the past year (-13,800 jobs, -1.5%), followed by Washington (-11,200 jobs, -5.0%) and New York (-6,800 jobs, -1.7%). The sharpest percentage drops occurred in Washington, New Jersey (-2.8%), Massachusetts (-2.3%), and Oregon (-2.3%).

Month-over-month, Michigan led job gains with 4,300 new positions (+2.1%), followed by Washington (+3,100), Missouri (+2,200), and Texas (+2,200). Montana saw the highest percentage jump at 3.9%.

Meanwhile, Virginia and California reported the largest declines for the month (-1,900 each), followed by Oregon, Georgia, and Minnesota. Vermont had the steepest percentage drop (-1.9%).

AGC officials called on Congress and the White House to finalize tax legislation and settle trade policy uncertainties. They also pressed for clarification on immigration enforcement priorities.

“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 report highlights how economic policy decisions in Washington are increasingly shaping local construction job trends. While strong gains in places like New Mexico and Ohio demonstrate resilience, persistent job losses in states such as California and Washington indicate deeper market hesitancy.

The labor market data also reflect broader regional dynamics—states with large public infrastructure investment pipelines or manufacturing booms are seeing the biggest employment increases, while those dependent on delayed commercial or housing projects are lagging.

This snapshot of construction job trends comes as contractors nationwide are navigating supply chain pressures, immigration enforcement efforts, and uncertainty around federal funding and permitting timelines.

If federal policymakers deliver greater clarity on tax and trade policies, experts say the industry could see stronger national growth in the second half of 2025.

Originally reported by Meck Times.