LAS VEGAS (KSNV) — Nevada has been ranked as the lowest-performing state in the U.S. construction job market, according to a new study, raising concerns about how economic trends and industry volatility are impacting employment.
A senior research analyst with The Associated General Contractors of America (AGC) said the data highlights how closely tied the state’s construction workforce is to larger economic forces. Tourism, real estate demand, and regional development patterns all contribute to the industry’s cyclical nature.
Nevada’s construction employment numbers peaked in 2023 but have since taken a sharp downturn. So far in 2025, the state has seen more than a 6% decline in construction jobs, the steepest drop in the nation. This follows several years of growth when developers and contractors rushed to meet housing and commercial demand in and around Las Vegas and Reno.
Industry experts warn that the slowdown is not isolated to Nevada but has hit the state harder than most because of its dependence on tourism-driven development projects. Hotel expansions, casinos, entertainment venues, and residential construction often track closely with fluctuations in visitor numbers and consumer spending.
According to the AGC, this decline underscores the need for more diversified growth strategies within the construction industry. Public infrastructure projects, renewable energy builds, and industrial development could help stabilize Nevada’s construction workforce in future cycles.
“Construction activity here has always been cyclical,” the analyst explained, noting that a slowdown in tourism or major development projects directly impacts jobs. While demand could rebound, contractors may face challenges retaining skilled workers during downturns.
The drop in construction employment not only affects contractors and tradespeople but also has ripple effects across Nevada’s economy. With fewer active projects, suppliers, equipment companies, and service providers tied to the industry also feel the slowdown.
State officials and industry leaders have been emphasizing workforce development programs to prepare for long-term needs, but the report suggests that addressing economic volatility will be key to stabilizing job performance.
For now, Nevada finds itself in a precarious position: leading the nation in construction job losses at a time when demand for new housing and infrastructure remains high.
Originally reported by News 3 Staff.
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