Construction employment saw an increase in 38 states and the District of Columbia from December 2023 to December 2024, with 26 states reporting job growth between November and December, according to the Associated General Contractors of America. The association's analysis highlights potential impacts on future employment levels based on upcoming workforce and funding plans by the new administration.
"Many firms are counting on strong public-sector demand this year and plan to hire as a result," stated Jeffrey Shoaf, the association's chief executive officer. "But possible federal funding pauses and efforts to curtail lawful work authorizations could impact future hiring plans for many firms."
Over the past year, Texas led in construction job additions with 31,500 jobs (3.8 percent), followed by Florida with 28,900 jobs (4.5 percent), Ohio with 17,900 jobs (7.6 percent), and Michigan with 13,600 jobs (7.2 percent). Alaska reported the highest percentage gain at 18.9 percent with an addition of 3,400 jobs.
Conversely, California experienced the largest job loss over the same period with a reduction of 12,400 jobs (-1.3 percent), followed by New York which lost 7,400 jobs (-1.9 percent). West Virginia had the largest percentage decrease at -3.4 percent with a loss of 1,200 jobs.
In terms of monthly changes from November to December, Washington saw an increase of 4,000 construction jobs (1.7 percent), while South Dakota reported the highest percentage gain at 1.9 percent with an additional 600 jobs.
New York experienced the most significant monthly decline losing 4,400 jobs (-1.2 percent). Mississippi recorded the largest percentage drop for that month at -2.2 percent.
The association also pointed out concerns regarding a memo from the Office of Management and Budget suggesting a temporary halt in several categories of federal construction funding. The duration of this pause could potentially affect ongoing projects.
"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 noted. He urged support for increased funding in construction education and training programs alongside temporary visa initiatives dedicated to the sector.