Fewer than half of U.S. metropolitan areas saw an increase in construction jobs between August 2024 and August 2025, according to a new analysis by the Associated General Contractors of America (AGC) based on government employment data. This marks the first time since 2021 that a minority of metro areas reported job gains in the sector.
AGC officials attributed the slowdown to several factors, including higher costs caused by tariffs, persistent worker shortages, and increased financing expenses. These challenges have led many private-sector developers to delay or cancel projects.
“Construction employment has stalled or retreated in more and more areas as owners pull back on projects in the face of higher costs,” said Ken Simonson, AGC’s chief economist. “Workforce shortages, tariffs and higher interest rates are inflating construction costs and schedules to the point where many projects no longer appear to make sense to developers.”
Out of all metro areas nationwide, only 177—representing 49 percent—added construction jobs during this period. Arlington-Alexandria-Reston, Va.-W.Va., recorded the largest numerical gain with 8,200 new jobs (9 percent), while Washington, D.C.-Md., saw a gain of 6,600 jobs (14 percent), which was also the highest percentage increase among all regions. Kokomo, Ind., matched this percentage increase with a gain of 300 jobs over twelve months.
Meanwhile, construction employment declined in 125 metro areas and remained unchanged in another 58. New York City experienced the most significant loss with a reduction of 7,900 jobs (5 percent). Other notable declines occurred in Riverside-San Bernardino-Ontario, Calif. (-6,500 jobs; -6 percent), Los Angeles-Long Beach-Glendale, Calif. (-6,000 jobs; -6 percent), and Baton Rouge, La., which lost 5,700 jobs—a decrease of 11 percent that represented both the largest numerical and percentage drop for any area.
A separate government report indicated there were 188,000 seasonally adjusted job openings in construction at the end of August—a decline of 38 percent from one year earlier and the lowest total since 2017. According to Simonson, this trend suggests that even fewer metro areas may see increases in construction employment moving forward. He also warned that a prolonged federal shutdown could further impact hiring if public works projects are suspended or delayed due to unavailable federal approvals.
AGC officials called on policymakers to resolve ongoing spending disputes quickly to prevent negative effects on infrastructure initiatives. They also urged Congress to address labor shortages through short-term relief measures such as passing the Essential Workers for Economic Advancement Act and the Dignity Act while increasing funding for construction education and training programs.
“With the Fed lowering interest rates, now is the time to address workforce shortages and provide tariff relief to boost demand for construction,” said Jeffrey D. Shoaf, AGC’s chief executive officer. “In addition, avoiding the kind of prolonged federal shutdown that will undermine necessary approval processes that can slow down the delivery of necessary public works projects.”
The full set of metro employment data is available by state ranking and top changes.