While construction job growth has flatlined in the Tri-Cities region since April 2024, the area is faring far better than much of the rest of Washington state, where the construction industry is facing steep employment declines.

According to a new data analysis from the Associated General Contractors of America (AGC), Washington state lost more than 14,000 construction jobs over the past year. Nearly every metropolitan area across the state reported a decline in construction employment, with just three regions—Tri-Cities, Kelso-Longview, and Walla Walla—avoiding losses.

The Tri-Cities region, which includes Kennewick, Pasco, and Richland, has maintained a workforce of over 11,000 construction workers, making it the fifth-largest construction market in Washington. The area's stability stands out in a state where major population centers are struggling to retain construction employment.

Seattle-Bellevue-Kent, the largest construction job market in Washington, lost 4,400 positions over the past year, reducing its total to 68,200. Tacoma-Lakewood experienced a drop of 2,300 jobs, Everett lost 1,400, and Spokane saw its construction employment fall by approximately 1,300 positions, settling at 14,700.

Nationally, the picture is more mixed. Slightly more than half of U.S. metro areas reported gains in construction employment, largely driven by infrastructure spending and demand for specific types of projects. Federal funding through the Bipartisan Infrastructure Law and CHIPS and Science Act has helped boost activity in areas with large-scale public and private projects.

“But that demand has not been enough to offset labor shortages and broader economic uncertainty in many other parts of the country,” said Macrina Wilkins, AGC’s senior research associate, in a statement.

The AGC analysis points to a combination of factors influencing the downturn in construction employment, including higher interest rates, ongoing inflation, permit delays, and a shortage of skilled workers. Many private developers have scaled back or paused projects in response to market volatility, particularly in commercial and multifamily real estate.

In Washington, the decline is especially concerning given the state’s historically strong construction market. Industry leaders warn that if labor shortages and permitting challenges persist, the slowdown could worsen—affecting not only employment but also housing availability and infrastructure timelines.

AGC officials continue to advocate for policies that would address these issues, including investments in construction training programs and faster approval processes for public and private projects.

While the Tri-Cities region has managed to hold the line for now, future growth could depend on whether upcoming infrastructure and energy projects in the region move forward as scheduled. The area’s proximity to the Hanford site and continued investment in clean energy could provide new opportunities for local contractors and workers in the months ahead.

Originally reported by TCAJOB Staff in Tricities Business News.