Construction employment rose in 31 states and the District of Columbia between July 2024 and July 2025, while 22 states added jobs from June to July, according to an analysis of federal data released by the Associated General Contractors of America. The organization attributed the mixed results to shifting federal policies on trade, funding, and labor.
“The number of states with construction job gains continues to slip, on both a monthly and a year-over-year basis,” said Ken Simonson, the association’s chief economist. “Owners have delayed project starts in the face of ever-changing tariff, funding, and labor force policies, while contractors are experiencing sudden losses of workers.”
Texas saw the largest increase in construction jobs over the past year with a gain of 27,000 positions (3.2 percent). Other notable increases were reported in Ohio (13,600 jobs), Michigan (10,100 jobs), and North Carolina (10,000 jobs). New Mexico led percentage growth at 14.3 percent.
Conversely, California lost more construction jobs than any other state during this period with a decrease of 18,200 positions (-2.0 percent). Washington and New Jersey also posted significant declines.
On a month-to-month basis from June to July 2025, Colorado recorded the highest job gains (3,800 jobs or 2.1 percent), followed by Oregon and Illinois. California had the steepest monthly decline (-3,300 jobs or -0.4 percent).
Association officials pointed out that uncertainty regarding construction costs—driven by questions about future interest rates and tariffs—has led private sector developers to postpone or cancel some projects. They called on the Trump administration to finalize trade agreements for greater predictability around tariffs and urged targeted immigration enforcement focused on undocumented workers involved in criminal activity.
“The more the administration can do to eliminate economic uncertainty, the more private sector demand is likely to rebound,” Simonson noted.