Chicago Construction News staff writer
Construction employment increased over the past year in 34 states and the District of Columbia, but declines in several large states, including California, highlight continued challenges in the industry, according to new federal data analyzed by the Associated General Contractors of America (AGC).
Between December 2024 and December 2025, California lost 19,800 construction jobs, a 2.2 percent drop. By contrast, Texas (+15,700 jobs, 1.8 percent), North Carolina (+14,400 jobs, 5.3 percent), and Ohio (+14,300 jobs, 5.7 percent) led the nation in numerical gains. Hawaii posted the largest percentage increase over the year at 8.7 percent, while Nevada recorded the steepest percentage decline (-9.3 percent).
In the Midwest, Ohio, Missouri, and Illinois saw solid growth, with Illinois adding 7,900 construction jobs over the 12-month period, a 3.4 percent increase.
Monthly trends in December were more mixed. Twenty states and D.C. added construction jobs, while 26 states experienced declines. Minnesota reported the largest numerical and percentage drop (-9,900 jobs, -6.6 percent), while Arizona and Montana posted the biggest monthly gains. California shed 5,000 jobs in December alone (-0.6 percent).
“Although a majority of states added construction employees over the year, employment has stalled in the latest month,” said Ken Simonson, AGC chief economist. “Too many projects have been postponed or canceled due to lack of funding, financing costs, or policy uncertainty about tariffs and immigration enforcement.”
AGC officials emphasized that funding uncertainty for highway and infrastructure projects remains a major factor. They urged Congress to enact the next federal surface transportation program before the current authorization expires on September 30.
“Contractors need to know that highway funds will keep flowing before they can commit to hiring or retaining essential workers,” said AGC CEO Jeffrey D. Shoaf. “It’s imperative that Washington provide that certainty by working now on the specifics of the next surface transportation bill.”
The data illustrate a regional divide in construction employment, with strong growth in parts of the Midwest and South, while states in the West and Northeast, including California and New York, continue to face workforce pressures.
