Workers on a Long Island construction site amid economic concerns.
Long Island has reported a troubling decline in construction employment, losing 4,300 jobs from May 2024 to May 2025, resulting in a significant 5% decrease. This marks the third consecutive month of job losses in the region, which aligns with similar trends seen statewide and in New York City. Economic uncertainties, such as fluctuating tariffs and potential tax changes, have stalled construction projects, amplifying the challenges faced by the industry. As a result, many developers are hesitant to initiate new developments, casting doubt on the future of construction employment.
Long Island has experienced a significant decline in construction employment, losing 4,300 jobs from May 2024 to May 2025, which equates to a 5% year-over-year decrease. This downturn marks a troubling trend, as it is the third consecutive month of falling construction jobs in the region. Overall, employment in the construction sector dropped from 83,100 to 78,800 jobs, according to data from the Associated General Contractors of America.
The decline in Long Island’s construction jobs positions it as the third-largest job loss among 360 metro areas evaluated by the AGCA in the United States. This trend is not isolated to Long Island; similar patterns are seen elsewhere in New York. In New York City, construction jobs fell by 3%, resulting in a loss of 4,100 positions during the same period, bringing the total to 139,200 jobs.
Across the entire state, New York saw a 2% decline in construction employment, losing 6,200 jobs from May 2024 to May 2025. This drop decreased the statewide total from 394,900 to 388,700 jobs. On a national scale, construction employment has rallied in several areas, with 180 of the 360 metro regions witnessing job increases, while 121 areas experienced declines.
The job losses in Long Island and New York City are largely attributed to ongoing economic uncertainty. Factors such as fluctuating tariffs, potential tax changes, and evolving labor policies have stalled numerous construction projects. Many developers are hesitant to commence new developments without clear information regarding future tax rates, material costs, and availability of workforce.
Ken Simonson, an economist for the AGCA, emphasized that only half of the evaluated metro areas have experienced year-over-year job growth in construction—marking the lowest figures since March 2021. This trend underscores the challenging climate within the construction industry.
While Long Island struggles with job losses, several major metro areas have reported substantial increases in construction employment. The Arlington-Alexandria-Reston region in Virginia led the way, adding 8,000 jobs, marking a 9% increase. Other notable gains were observed in Cincinnati, OH, which reported a 10% boost with 5,400 new jobs, and Washington, D.C., which saw a 10% increase with 4,900 jobs added.
In contrast, several areas have faced severe job losses. The Riverside-San Bernardino-Ontario region in California lost 6,200 jobs, indicating a 5% decline. The Los Angeles-Long Beach-Glendale area followed closely behind with a loss of 5,100 jobs or a 3% drop. Additionally, Baton Rouge, Louisiana, saw a significant setback with a loss of 4,000 jobs.
Construction spending has shown a decline over the past year, primarily due to the ongoing hesitation among developers regarding new projects in light of the aforementioned uncertainties. Industry leaders emphasize the critical need for reliable information from federal officials to stimulate growth in the construction sector. Without this clarity, the prospects for a rebound in construction demand remain uncertain.
Looking ahead, the previous years prior to 2024 had indicated a positive trajectory in construction jobs across Long Island following pandemic-related declines. However, the current economic climate poses significant challenges, and the ability for the industry to recover hinges heavily on resolving the issues that are currently stalling growth.
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