Construction employment saw an increase in 33 states and the District of Columbia from May 2024 to May 2025, according to a recent analysis by the Associated General Contractors of America. Additionally, 27 states added construction jobs between April and May. The association noted that employment gains have been modest due to uncertainties surrounding federal labor, tax, and trade policies.
Ken Simonson, the association’s chief economist, stated, “Construction has been in a holding pattern for several months, with gains in a small majority of states.” He attributed this stagnation to uncertainties over tariffs, immigration, federal funding, taxes, and other policy shifts causing project delays nationwide.
Over the past year, Texas led with the highest number of new construction jobs (28,600 or 3.4 percent), followed by Ohio (17,000 jobs or 6.9 percent), Michigan (10,400 jobs or 5.3 percent), Florida (9,900 jobs or 1.5 percent), and New Mexico (9,100 jobs or 17.2 percent). New Mexico also recorded the largest percentage gain over this period.
Conversely, California experienced the most significant job losses (-13,800 jobs or -1.5 percent) over the same timeframe. Washington followed with a loss of -11,200 jobs (-5.0 percent), marking it as having the largest percentage decline among states.
On a monthly basis from April to May 2025, Michigan topped job additions with an increase of 4,300 positions (2.1 percent). Washington added 3,100 jobs (1.5 percent), while Missouri increased by 2,200 positions (1.5 percent). Montana saw the highest percentage growth at 3.9 percent with an addition of 1,400 jobs.
Virginia and California faced notable declines in construction employment during this month-to-month period; both lost approximately -1 ,900 positions each (-0 .8% for Virginia and -0 .2% for California).
The association called on Congress to finalize tax legislation promptly to prevent potential tax hikes on construction companies next year and urged resolution of trade disputes impacting tariff levels.
Jeffrey Shoaf emphasized: “The more certainty Washington can provide about taxes , tariffs ,and labor policy ,the more likely developers are to come off sidelines start delayed projects.”