New York Construction Report staff writer
Construction employment grew in 34 states and the District of Columbia between December 2024 and December 2025, while 20 states and D.C. added jobs in December alone, according to federal data analyzed by the Associated General Contractors of America. Association officials warned that delayed federal transportation funding could force contractors to lay off workers.
“Although a majority of states added construction employees over the year, employment has stalled in the latest month,” said Ken Simonson, the association’s 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.”
Texas led the nation in job gains for the year, adding 15,700 construction positions, followed by North Carolina (14,400), Ohio (14,300), Missouri (8,500), and Illinois (7,900). Hawaii posted the largest percentage increase at 8.7 percent, followed by Iowa (8.6 percent), Idaho (8.2 percent), West Virginia (7.6 percent), and New Mexico (6.8 percent).
By contrast, California lost the most construction jobs over the year with 19,800 positions, followed by New York (-15,700), Washington (-11,600), Nevada (-10,500), and New Jersey (-10,200). Nevada saw the largest percentage decline at 9.3 percent.
Monthly data showed construction employment rose in 20 states and D.C. and fell in 26 states, while four states — Alaska, Arkansas, Colorado, and Pennsylvania — were unchanged. Arizona added the most December jobs at 3,900, followed by Wisconsin (3,100) and Washington (1,500). Montana had the largest percentage gain at 3 percent.
Minnesota experienced the steepest monthly losses with 9,900 jobs, or 6.6 percent, followed by California (-5,000), Texas (-4,500), Michigan (-3,800), and Virginia (-3,400). Other states with large percentage declines included Oklahoma, Oregon, Michigan, and Kansas.
Association leaders emphasized that funding uncertainty for highway and infrastructure projects is contributing to stagnating employment. They urged Congress and the White House to pass the next federal surface transportation program before the current authorization expires Sept. 30.
“Contractors need to know that highway funds will keep flowing before they can commit to hiring or retaining essential workers,” said Jeffrey D. Shoaf, CEO of the Associated General Contractors of America.
