WASHINGTON — Construction employment increased in a majority of U.S. states over the past year, signaling continued demand for building activity, even as industry leaders warn that workforce shortages could hinder future growth.
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An analysis of new federal employment data released by the Associated General Contractors of America shows that 38 states added construction jobs between January 2025 and January 2026. Employment also rose in 40 states and the District of Columbia from December to January.
“January was a good month for construction employment in many states despite harsh weather in much of the country,” said Ken Simonson, the association’s chief economist. “However, continued employment gains will depend on having enough workers with the right skills, especially to build data centers and power projects.”
Texas recorded the largest increase in construction employment over the past year, adding 30,100 jobs, a 3.4% gain. Missouri followed with 19,800 new jobs, representing a 13.9% increase, while Illinois added 14,000 jobs and North Carolina gained 10,200 positions, or 3.7%. Wisconsin rounded out the top five with 9,000 additional jobs.
West Virginia led all states in percentage growth, with construction employment rising 15%, followed by Missouri, Wisconsin and Illinois.
However, not all states experienced gains. California posted the largest decline, losing 15,400 construction jobs, or 1.7%, over the 12-month period. Florida, Oregon, Arizona and Massachusetts also recorded job losses, with Oregon experiencing the steepest percentage drop at 3.4%.
On a monthly basis, Illinois added the most jobs between December and January, followed by Texas, Missouri, California and Pennsylvania. Meanwhile, Idaho recorded the largest decline, losing 3,400 jobs, or 4.4%, during that period.
Despite the broad-based gains, industry officials emphasized that labor shortages remain a critical concern, particularly as demand grows for specialized construction tied to infrastructure, data centers and energy projects.
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The association is urging federal policymakers to expand funding for workforce training programs and career and technical education to help address the skills gap.
“Contractors are eager to employ workers with the skills to execute needed projects but government must do more to fill the pipeline of potential hires,” said Jeffrey D. Shoaf, CEO of the Associated General Contractors of America. “The federal government should increase support for state, local, and industry efforts to provide workers with the right skills. Meanwhile, contractors should be allowed to fill open positions with qualified workers from other countries when there is a demonstrated lack of available, qualified workers.”
Industry leaders noted that the growing need for electricians and other skilled trades is especially acute, driven by the expansion of data center construction and power infrastructure projects nationwide.
As construction demand continues across sectors, the ability to sustain job growth will depend largely on workforce availability. Without sufficient investment in training and labor pipelines, officials warn that the industry could struggle to keep pace with project demand in the coming years.
Originally reported by Meck Times.
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