Construction Employment: Texas and New Mexico Lead, California and Washington Lag

The construction industry has seen a mixed bag of employment trends over the past year, with some states experiencing significant job gains while others face substantial losses. According to a recent analysis by the Associated General Contractors of America, construction employment increased in 31 states and the District of Columbia in March 2025 compared to the previous year. However, the increases are less widespread and robust than in 2024, highlighting the ongoing challenges in the industry.

Texas and New Mexico have emerged as leaders in construction job gains. Texas added the most construction employees, with 28,700 jobs or a 3.4% increase, followed by Ohio with 16,600 jobs, a 6.7% increase. New Mexico had the largest percentage gain over 12 months, with a 12.0% increase, adding 6,400 jobs. These gains can be attributed to a surge in infrastructure projects, reshoring of manufacturing, and pandemic-era building booms. The construction sector in these states has benefited from increased demand for new facilities and the need for skilled labor to meet these demands.

In contrast, California and Washington have experienced significant job losses. California lost the most construction jobs from March 2024 to March 2025, with a decrease of 23,400 jobs or 2.6%. Washington followed with a loss of 11,900 jobs, a 5.3% decrease. These job losses are attributed to falling business and consumer confidence, rising costs from tariffs, and project delays or cancellations. The challenging conditions caused by tariffs and the pandemic have led to fewer areas having job gains, impacting the construction industry's ability to meet demand.



For the month of March, industry employment increased in 30 states, declined in 17 states and D.C., and was unchanged in Idaho, Kansas, and New Mexico. Texas added the most construction jobs for the month, with 8,500 jobs or a 1.0% increase, followed by Virginia with 7,200 jobs, a 3.3% increase. Kentucky had the largest percentage gain for the month, with a 3.6% increase, adding 3,500 jobs. These monthly gains reflect the ongoing demand for construction workers in these states, despite the challenges faced by the industry.

On the other hand, California lost the most construction jobs from February to March, with a decrease of 3,700 jobs or 0.4%. Mississippi experienced the highest percentage loss for the month, with a 3.4% decrease, losing 1,800 jobs. These job losses highlight the ongoing challenges faced by the construction industry, including labor shortages and rising costs.

Association officials have urged policymakers to expand worker authorization programs to ensure that the nation has sufficient skilled construction workers. Ken Simonson, the association’s chief economist, noted that as workers retire, leave the industry, or leave the country, it becomes more urgent to allow contractors to recruit from abroad as well as domestically. Jeffrey Shoaf, the association’s chief executive officer, emphasized that the administration cannot meet its goal of bringing back manufacturing jobs unless there are enough construction workers with the right skills to build new plants. The only way that can happen is with worker authorization programs that allow for construction workers to be hired on a timely basis.

In conclusion, the construction industry continues to face significant challenges, with some states experiencing job gains while others face substantial losses. The expansion of worker authorization programs could help the industry meet the demand for skilled labor, ensuring that construction projects are completed on time and within budget. As the industry navigates these challenges, it will be crucial for policymakers to support initiatives that address labor shortages and promote the growth of the construction sector.