Construction Employment Increases in 33 States and D.C. Over the Past Year, Led by Texas and Ohio

WASHINGTON, D.C., June 30, 2025 – Construction employment grew in 33 states and the District of Columbia between May 2024 and May 2025, while 16 states experienced declines and Connecticut saw no change, according to the Associated General Contractors of America’s analysis of new federal labor data.

“Contractors in most states remain busy and eager to hire more workers, but they are struggling to find enough qualified people,” said Ken Simonson, AGC’s chief economist. “The number of states with construction job gains may rise further in the next few months as more training and education programs begin to pay off.”

Texas led the nation in overall job additions with 28,600 new construction jobs, a 3.4% increase. Ohio followed with a gain of 17,000 jobs, up 6.9%, while Michigan added 10,400 jobs (5.3%), Florida added 9,900 jobs (1.5%), and New Mexico added 9,100 jobs (17%). In terms of percentage growth, New Mexico topped the list, followed by Idaho (10%, 7,200 jobs), Kentucky (7.1%, 6,600), West Virginia (7.1%, 2,400), and Ohio.

On the flip side, California experienced the largest year-over-year job loss with 13,800 fewer construction jobs, a 1.5% drop. Washington followed with a loss of 11,200 jobs (5%), then New York (-6,800, -1.7%), New Jersey (-4,600, -2.8%), and Massachusetts (-4,000, -2.3%). The steepest percentage losses were in Washington, New Jersey, Massachusetts, Oregon (-2.3%, -2,700), and Arkansas (-2.2%, -1,500).

Month-to-month data also reflected shifting momentum in construction hiring. Between April and May 2025, 27 states and D.C. added jobs, 21 states lost jobs, and employment remained flat in New Hampshire and Wisconsin. Michigan led monthly gains with 4,300 new jobs (2.1%), followed by Washington (3,100, 1.5%), Missouri (2,200, 1.5%), Texas (2,200, 0.3%), and New Mexico (1,600, 2.6%). Montana posted the highest percentage gain at 3.9% (1,400 jobs), with strong increases also in Alaska (3.8%), New Mexico, Michigan, and Idaho.

Virginia and California posted the largest monthly job losses (-1,900 and -1,900, respectively), followed by Oregon (-1,700), Georgia (-1,400), and Minnesota (-1,100). Vermont experienced the sharpest percentage drop (-1.9%, 300 jobs), followed by Oregon, Arkansas (-1.4%), Rhode Island (-1.3%), and Virginia.

(For D.C., Delaware, and Hawaii, the Bureau of Labor Statistics combines construction with mining and logging; AGC attributes all changes to construction.)

In a related indicator of industry health, Dodge Construction Network reported a 13% increase in total construction starts from April to May 2025, adjusted for seasonality. Nonresidential building starts surged by 18%, residential starts edged up 2%, and nonbuilding starts such as infrastructure projects jumped 20%.

Despite May’s month-over-month growth, cumulative construction starts for the first five months of 2025 lag behind last year’s pace by 4%. Residential starts fell 5%, nonresidential building starts dropped 6%, and nonbuilding work was down 2% compared to the same period in 2024.

The overall employment and project activity data signal a sector that remains active but is contending with headwinds such as labor shortages, inflationary pressure on materials, and uneven demand across states.

Originally reported by Flood Daily.