WASHINGTON STATE — June 27, 2025 — While Washington gained a few thousand construction jobs in May compared to April, the state still leads the nation in year-over-year construction job losses, according to the Associated General Contractors of America (AGC).

A recent AGC analysis of federal employment data revealed that Washington's construction workforce declined by 11,200 jobs, or 5%, compared to May 2024—the largest percentage decrease in the U.S. over that span. Though the month-over-month numbers showed slight improvement, the broader trend reflects a challenging environment for builders across the Pacific Northwest.

“Uncertainty over tariffs, immigration, federal funding, taxes and other policy shifts is causing many types of projects to be put on hold across the country,” said Ken Simonson, AGC’s chief economist.

Despite the statewide decline, some regions are defying the trend. The Tri-Cities area recorded 11,900 construction jobs in May, up from 11,600 in April and 11,200 a year ago, according to data from the Washington Employment Security Department. This regional resilience stands in contrast to statewide struggles and highlights pockets of growth where infrastructure and housing projects continue to move forward.

Nationally, California experienced the greatest loss in total construction jobs, with 13,800 positions eliminated, though that represents only a 1.5% reduction in its overall construction workforce.

AGC officials warn that while select areas are seeing slight monthly rebounds, overall employment growth remains “muted”. They cite ongoing political and economic uncertainty as a key reason why contractors are slowing investments or postponing projects, particularly in states facing tighter regulatory or budgetary environments.

In Washington, industry experts also point to permitting delays, high labor costs, and concerns about long-term public infrastructure funding as additional headwinds.

As national debates continue around tariffs, immigration enforcement, and federal spending, AGC has called for clearer policy direction from lawmakers. Until then, many builders remain cautious, contributing to lagging job recovery in sectors such as commercial development and public works.

Originally reported by Tricities Business News.