Construction workers collaborating to build in a thriving industry.
Construction employment has surged in 33 states and the District of Columbia over the past year, with Texas leading job increases. Despite this growth, 16 states faced declines, reflecting ongoing industry uncertainties. Leaders urge Congressional action on tax and trade policies to bolster job growth.
Construction employment has notably increased across 33 states and the District of Columbia from May 2024 to May 2025, despite ongoing uncertainties surrounding federal labor, tax, and trade policies. From April to May 2025, 27 states also registered job increases in the construction sector.
Texas led the nation by contributing the highest number of new construction jobs in the past year, with an impressive increase of 28,600 jobs, marking a 3.4% increase. Ohio followed closely, adding 17,000 jobs with a significant 6.9% increase. Other states like Michigan and Florida also made substantial gains, with Michigan adding 10,400 jobs (a 5.3% increase) and Florida adding 9,900 jobs (a modest 1.5% increase).
The standout performer among the states was New Mexico, which witnessed a remarkable 17.2% increase in construction jobs, translating to 9,100 jobs gained. Idaho and Kentucky also showed strong growth, adding 7,200 jobs (a 10.1% increase) and 6,600 jobs (a 7.1% increase) respectively. West Virginia matched Kentucky’s growth, also recording a 7.1% increase with 2,400 new jobs.
However, not all states experienced this boom. A total of 16 states reported construction job losses over the past year, with California experiencing the highest decline. The state lost 13,800 jobs, representing a -1.5% decrease, while Washington faced a considerable percentage drop of -5.0%, translating to 11,200 jobs lost. New York, New Jersey, and Massachusetts also saw job losses of 6,800, 4,600, and 4,000 jobs respectively.
In a more granular view of the monthly changes in May 2025, Michigan stood out by adding 4,300 jobs for a 2.1% increase, indicating a strong monthly performance. The same period was challenging for locations like Virginia and California, both of which experienced decreases of 1,900 jobs, resulting in 0.8% and 0.2% decreases respectively. Vermont faced the largest percentage loss in May with a decline of -1.9%.
The overall mixed picture of employment trends in the construction sector underscores the complicated landscape for the industry. Even with gains in a majority of states, the losses signal the persistent effects of uncertainty related to policies that govern labor, taxation, and trade. The need for clarity has been emphasized as essential for motivating developers to move forward with projects that have been put on hold.
In recent discussions, industry leaders have urged Congress to prioritize and finalize a tax bill and resolve ongoing trade disputes. Addressing these issues is seen as critical to restoring the much-needed certainty in the construction industry. Such clarity regarding taxes, tariffs, and labor policies would encourage developers to initiate projects that have been delayed, thus amplifying job growth in the sector.
As the construction landscape continues to evolve, the trends observed from May 2024 to May 2025 will have lasting implications for both employment opportunities and the overall economic environment in the U.S. The rising numbers in certain regions showcase an industry that, while challenged, remains poised for potential growth should the obstacles of uncertainty be addressed effectively.
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