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Construction Employment

More States Add Construction Jobs as Labor Crunch Persists

AGC analysis shows widening employment gains, but contractors warn worker shortages continue to hinder project delivery.

By W&C Staff
construction worker framing a building
Photo by Josh Olalde on Unsplash
December 12, 2025

Construction employment expanded across much of the country in September, with 31 states and the District of Columbia adding jobs and 27 states reporting year-over-year gains, according to an analysis of federal employment data released by the Associated General Contractors of America. Association officials said the broader uptick signals strengthening demand but warned that persistent labor shortages remain one of contractors’ biggest challenges.

“Seeing more states add construction jobs in September is an encouraging sign, but labor shortages remain a significant hurdle for many contractors,” said Macrina Wilkins, senior research analyst at the association. “Firms continue to report that finding enough qualified workers is one of their biggest challenges and a key factor behind project delays.

Between September 2024 and September 2025, 27 states and D.C. added construction jobs, while 23 states shed jobs. Texas added the most construction jobs (16,400 jobs or 1.9 percent), followed by Virginia (13,500 jobs, 6.1 percent), Ohio (12,200 jobs, 4.9 percent) and Michigan (11,000 jobs, 5.6 percent). New Mexico had the largest percentage gain over 12 months (12.4 percent, 6,700 jobs), followed by Idaho (7.5 percent, 5,400 jobs), Alaska (7.1 percent, 1,300 jobs), and Kentucky (6.9 percent, 6,500 jobs). 

New York lost the most construction jobs during the past 12 months (-16,900 jobs, -4.3 percent), followed by California (-14,600 jobs, -1.6 percent), Washington (-12,100 jobs, -5.4 percent), New Jersey (-10,000 jobs, -6.0 percent), and Nevada (-5,500 jobs, -5.0 percent). The largest percentage loss was in New Jersey, followed by Washington, Nevada, New York, and Maine (-3.4 percent, -1,200 jobs).

For the month, industry employment increased in 31 states and the District of Columbia, declined in 17 states, and was unchanged in Maine and Arizona. Texas added the most construction jobs (4,300 jobs or 0.5 percent), followed by Michigan (4,200 jobs, 2.1 percent) and Indiana (1,800 jobs, 1.1 percent). The largest percentage gain occurred in Michigan, followed by Wyoming (1.7 percent, 400 jobs) and Iowa (1.5 percent, 1,300 jobs).

Florida experienced the largest decline in construction jobs from August to September (-4,400 jobs, -0.7 percent), followed by Mississippi (-2,600 jobs, -1.0 percent), Georgia (-3,000 jobs, -4.9 percent), and New York (-2,400, jobs, -0.6 percent). Mississippi also lost the highest percentage of jobs for the month, followed by Alaska (-1.5 percent, -300 jobs), Montana, West Virginia (-1.1 percent, -400 jobs), and Missouri (-0.9 percent, -1,300 jobs). 

Association officials noted that demand for private-sector construction jobs is likely to increase since the Federal Reserve Board lowered interest rates yesterday. That new demand is likely to put additional strain on already tight labor markets. As a result, association officials continued to urge federal leaders to take short- and long-term steps to support construction workforce development. 

“We need federal officials to make significant new, long-term investments in construction-focused workforce development programs,” said Jeffrey D. Shoaf, the chief executive officer of the Associated General Contractors of America. “At the same time they should be taking short-term steps to allow more people to lawfully enter the country and work in construction to meet demand while we rebuild the domestic workforce pipeline.”

View September 2025 state employment data and 1-month, 12-month rankings.

 

KEYWORDS: AGC (Associated General Contractors of America) construction climate construction employment workforce

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