Current Trends in Construction Employment
Construction employment grew in 36 states and the District of Columbia between July 2025 and July 2026. This data, released by the Associated General Contractors of America, reflects a period where many firms continued hiring to meet project demands across the country. Between June and July 2026, 28 states and the District of Columbia added jobs to their payrolls. Still, these numbers mask underlying volatility within the sector.
Texas saw the largest numeric increase in construction jobs over the year, adding 17,500 positions. Louisiana recorded a 11.4 percent growth, the highest percentage gain in the country. North Carolina also performed well, adding 15,400 jobs, a 5.5 percent increase. These figures underscore significant activity in specific markets, yet the national picture is uneven.
Areas of Job Contraction
Not every state shared in the growth. Thirteen states recorded job losses during the same 12-month period. California led the decline with 6,700 fewer construction jobs, marking a 0.7 percent drop. Virginia and New York also experienced job losses of 5,800 and 5,700 respectively. Vermont reported stagnant employment numbers for the year.
Month-over-month data paints a similar picture of regional variance. For the month of July, 18 states saw declines in construction employment. West Virginia suffered the largest percentage loss at 2.8 percent. Alabama and Washington also shed jobs, with Alabama dropping 2,200 positions and Washington losing 2,100. This suggests that while annual figures might show growth, the short-term outlook for construction hiring is increasingly unstable in several parts of the country.
Risks to Continued Growth
Industry leadership warns that these gains face pressure from several policy and economic fronts. Jeffrey D. Shoaf, chief executive officer of the Associated General Contractors of America, noted that momentum depends on legislative stability. He specifically pointed to the looming expiration of federal highway and transit funding on September 30, 2026. A lapse in this funding would halt many active projects.
Other threats include shifting tariff policies and growing local resistance to data center development. These factors complicate the decision-making process for employers who must weigh the cost of materials against the certainty of future demand. Ken Simonson, the association's chief economist, stated that while gains remain widespread for now, these risks could derail further progress. The industry is watching the federal government for clear signals on infrastructure spending, as policy decisions will dictate whether this current employment trend can hold into the next fiscal year.