Construction employment fell by 7,000 jobs in August, according to an analysis of new government data released by the Associated General Contractors of America (AGC). The industry’s total employment stood at 8,295,000 on a seasonally adjusted basis. This marks the third consecutive monthly decrease and shows that since December, overall construction employment has grown by only 6,000 positions.
Ken Simonson, AGC’s chief economist, said nonresidential construction activity has stalled along with homebuilding. “The latest figures show that nonresidential construction—not only homebuilding—has stalled,” Simonson stated. “That fits with reports that owners have hit the pause button on many projects, in large part because of uncertainty over the impact of tariffs and other policy upheavals, as our workforce survey found.”
Despite stagnant job growth, the unemployment rate for recent construction workers was 3.2 percent in August. This ties the record low set for August in 2024. Simonson attributed this to some workers leaving the industry due to concerns about immigration enforcement.
Nonresidential construction firms saw a net loss of 1,200 employees last month. Losses included 3,300 jobs at nonresidential building construction firms and 200 among specialty trade contractors. These were partially offset by a gain of 2,300 jobs at heavy and civil engineering firms. Residential construction lost a total of 6,100 jobs—900 at homebuilders and other residential building companies and another 5,200 among specialty trade contractors.
Findings from the AGC’s recent workforce survey conducted with NCCER indicate broader challenges affecting project timelines and hiring. Sixteen percent of surveyed firms reported owners had canceled or scaled back projects due to tariffs affecting demand or need. Twenty-six percent cited delays linked to policy changes involving federal funding or regulations. Additionally, twenty-eight percent said immigration enforcement actions over the past six months had affected their projects.
AGC officials expressed concern that ongoing policy shifts are delaying infrastructure improvements as well as manufacturing and housing projects across the country. They called on federal policymakers to stabilize trade rules and refine immigration enforcement practices so they do not disrupt ongoing work.
“The economy depends on construction,” said Jeffrey D. Shoaf, AGC’s chief executive officer. “Constant changes in tariffs and other federal policies, and misdirected immigration enforcement are interfering with the industry and the broader economy.”
The association provided access to both its analysis of construction employment data as well as survey results outlining these trends.