Analysis of National Construction Employment Trends
Construction employment expanded in 173 of 360 U.S. metropolitan areas between July 2025 and July 2026. This data, analyzed by the Associated General Contractors of America from federal labor statistics, shows that job growth occurred in less than half of the country's major markets during the 12-month period. Employment levels fell in 127 metro areas, while 60 locations reported no change in headcounts.
Ken Simonson, chief economist for the association, notes that the demand for workers remains highly uneven across the country. Projects involving power infrastructure, data centers, and advanced manufacturing sites report significant labor shortages. Contractors in these specific sectors struggle to find enough skilled personnel to meet project timelines. Firms outside of these high-growth areas, however, face stagnation or are actively reducing their workforces.
Leading Markets for Job Gains and Declines
Houston led the nation in job creation, adding 13,100 construction positions for a 5% increase. Baton Rouge, Louisiana, followed with a 27% rise, which represents 12,400 new jobs. St. Louis added 11,400 positions, a growth rate of 14%. Davenport, Iowa, also posted strong performance, increasing its construction sector employment by 15%.
Conversely, several markets saw significant workforce reductions. The Riverside, California, area recorded the largest drop, shedding 6,100 jobs. This 5% decline reflects a broader struggle in parts of the Western United States. Oakland, California, lost 4,400 jobs, while Pittsburgh saw a reduction of 3,800 workers. Lawton, Oklahoma, posted the largest percentage decrease in the country at 12%, though this total amounted to 200 jobs.
Broader Industry Outlook
The construction industry continues to face high input costs alongside these labor fluctuations. Prices for essential materials like metal and fuel have pressured firm margins over the last year. Despite slower job growth in most metro areas, the persistent demand for specialized facilities suggests that firms with expertise in heavy industrial and data center work will keep hiring.
Industry participants are watching the next phase of workforce data closely. The Associated General Contractors of America plans to publish its annual survey with the National Center for Construction Education and Research on September 3. This report will provide further context on how contractors are addressing the current hiring gaps. The divergence between thriving industrial hubs and cooling residential or commercial markets remains the primary story for the sector moving into the fourth quarter.