Construction Employment Trends: Texas and New Mexico Lead, California and Montana Lag

The construction industry in the United States has seen a mixed bag of employment trends over the past year, with some states experiencing significant job growth while others face declines. According to a recent analysis by the Associated General Contractors of America, construction employment increased in 31 states and the District of Columbia from February 2024 to February 2025. However, the number of states adding construction jobs has decreased compared to the previous year, reflecting growing market uncertainty due to factors such as tariffs and immigration policies.

Texas and New Mexico Lead the Way

Texas and New Mexico have emerged as leaders in construction job growth over the past year. Texas added the most construction employees, with 21,700 new jobs, representing a 2.6% increase. New Mexico followed closely with a 12.2% increase, adding 6,500 jobs. Other states with significant job gains include Florida, Ohio, Idaho, and North Carolina. These states have benefited from strong economic conditions and government investments in infrastructure and manufacturing.



California and Montana Lag Behind

On the other hand, California and Montana have experienced the largest declines in construction employment. California lost 14,900 jobs, a 1.6% decrease, while Montana saw a 6.4% decline, losing 2,400 jobs. Other states with significant job losses include Washington, Arizona, New York, and Massachusetts. These states have been impacted by high interest rates, price inflation, and a challenging lending market, which have slowed down construction activity.

Ohio and West Virginia Top Monthly Gains

For the month of February, Ohio and West Virginia led the way in construction job gains. Ohio added 8,200 jobs, a 3.3% increase, while West Virginia saw a 4.5% increase, adding 1,500 jobs. Other states with significant monthly job gains include Florida, Texas, Virginia, and Maryland. These states have benefited from strong demand for construction services and government investments in infrastructure.

Washington Faces the Worst Losses

Washington experienced the largest decline in construction jobs from January to February, losing 9,600 jobs, a 4.3% decrease. Other states with significant monthly job losses include California, Oregon, and Wisconsin. These states have been impacted by tariffs, retaliatory measures by U.S. trading partners, and the pending cancellation of work authorizations for workers from certain countries.

Market Uncertainty and Future Trends

The construction industry is facing growing market uncertainty due to several factors, including tariffs and immigration policies. Tariffs on imported goods have led to higher input costs for construction materials, while immigration policies have shrunk an already tight labor market. These factors are expected to influence future employment trends by increasing material costs, leading to project delays, and exacerbating the labor shortage.

Association officials noted that they are working to keep members informed of the latest developments in tariff and immigration policy and what it might mean for the construction industry. They urged the administration to boost funding for domestic construction education and training programs and to expand opportunities for people to lawfully enter the country to work in construction.

In conclusion, the construction industry in the United States is experiencing a mixed bag of employment trends, with some states leading the way in job growth while others face declines. The industry is facing growing market uncertainty due to factors such as tariffs and immigration policies, which are expected to influence future employment trends. However, there are reasons to be optimistic, as government investments and improving economic conditions are likely to drive growth in the medium term.