DALLAS — Texas continues to dominate the U.S. construction landscape, adding more jobs than any other state over the past year, according to new industry data.
Between January 2025 and January 2026, the state added 30,100 construction jobs — a 3.4% increase — marking the largest numeric gain nationwide, based on an analysis released by the Associated General Contractors of America. The increase outpaced other leading states, including Missouri, Illinois and North Carolina.
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The surge reflects strong demand for large-scale development across sectors such as infrastructure, commercial construction and energy projects, particularly in fast-growing regions like North Texas.
Nationwide, construction employment expanded in 38 states during the same period, while 11 states experienced declines and one remained unchanged. In contrast to Texas’ gains, California reported the steepest losses, shedding 15,400 jobs, followed by Florida, which lost 8,800 positions.
“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 also recorded significant short-term gains, adding 11,800 construction jobs between December and January — the second-highest monthly increase in the country, trailing only Illinois.
Industry analysts attribute the growth to sustained investment in major development projects, including transportation infrastructure, commercial real estate and energy-related construction. The rise of data centers and power infrastructure tied to artificial intelligence is also fueling demand for skilled labor.
At the national level, construction employment rose by 26,000 jobs in March, contributing to a broader increase of 178,000 jobs across all sectors, according to federal labor data.
The continued expansion highlights Texas’ position as a key hub for construction activity, with population growth and business investment driving new projects across urban and suburban markets.
Despite the strong hiring numbers, industry leaders warn that a shortage of skilled workers could slow future growth if not addressed.
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“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.”
The shortage is particularly acute in specialized trades such as electrical work, which is essential for data centers and energy infrastructure projects. Without a steady pipeline of trained workers, contractors may struggle to meet project timelines and rising demand.
Industry groups continue to advocate for expanded workforce development programs, including apprenticeships and technical training initiatives, to address the gap.
While Texas remains a leader in construction job growth, officials emphasize that sustaining momentum will depend on balancing demand with workforce capacity.
As development continues at a rapid pace, the state’s ability to train and retain skilled workers will play a critical role in shaping the future of its construction sector.
Originally reported by Justin Freiman in WFAA.
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