SEATTLE, WA — Washington state has emerged as the top performer in construction job growth in 2024, adding a total of 4,000 new jobs between December 2023 and December 2024, according to the Associated General Contractors (AGC). This increase surpasses all other states and the District of Columbia, which reported job gains in the construction sector. This boom places Washington at the forefront of a nationwide recovery in the construction industry.

However, while this surge is promising, industry leaders are voicing concerns about the long-term sustainability of this growth, particularly in light of potential changes in federal policies and decisions made by the White House that could affect funding and workforce availability in the construction sector.

State-by-State Construction Job Trends

While Washington saw a significant rise in jobs, several other states experienced construction job losses. California recorded the most notable decline, losing 12,400 construction jobs, followed by New York (down 7,400 jobs), Maryland (down 3,900 jobs), Arizona (down 2,900 jobs), and Oregon (down 2,500 jobs). These losses highlight the uneven recovery across the country, with some states struggling to regain the workforce needed to support infrastructure and development projects.

Uncertainty Surrounds Future Growth

As job growth continues in some regions, Jeffrey Shoaf, CEO of the Associated General Contractors, explained that the construction industry is cautiously optimistic but facing serious challenges in the months ahead.

"Many firms are counting on strong public-sector demand this year and plan to hire as a result," Shoaf said. "But possible federal funding pauses and efforts to curtail lawful work authorizations could impact future hiring plans for many firms." These remarks underline the vulnerability of the industry to shifts in federal policy and funding allocations.

Concerns Over Federal Funding and Work Authorization

The AGC has raised alarms over the uncertainty surrounding federal funding for critical infrastructure projects. If federal funding were to be delayed or reduced, the construction industry's recovery could be severely hampered, as many projects rely on government funding to move forward. Shoaf emphasized the need for government action to support the workforce and keep construction timelines intact.

"While it is unclear what impact this new funding pause will have, we do know that any significant delays in federal funding for vital infrastructure and construction projects are likely to affect construction schedules," Shoaf stated.

Additionally, temporary visa programs that allow skilled workers to fill gaps in the workforce are a vital part of the construction industry's ability to meet demand. Shoaf added that these programs are essential to prevent further labor shortages that could hinder progress.

"Moving forward, we hope the administration will work to narrow a massive federal funding gap that promotes four-year colleges over rewarding careers in fields like construction," Shoaf said, underscoring the need for greater recognition and support for construction careers, which are often sidelined in favor of traditional educational pathways.

Federal Action Needed to Ensure Industry Growth

The Associated General Contractors continues to urge the Trump administration to act swiftly to prevent disruptions in the construction industry’s progress. As public-sector demand for construction services grows, ensuring consistent funding and access to a skilled workforce will be key to maintaining the industry’s growth.

"It's not just about the immediate future, but about positioning the construction sector for long-term success," Shoaf concluded. "The actions taken today will define the ability of the industry to meet the needs of tomorrow’s infrastructure and economic development projects."

Looking Ahead: The Need for Continued Growth and Adaptability

As Washington state leads the nation in construction job growth, other states and the construction industry at large are bracing for the impact of federal policy changes. The next few months will be crucial in determining whether the momentum can be maintained or whether delays in funding and workforce availability could stymie the industry’s progress.

The AGC calls on both local and federal authorities to act proactively in ensuring that construction companies have the resources and workforce needed to continue expanding, upgrading infrastructure, and creating jobs for future generations.