Arlington-Alexandria-Reston, Va.-W.Va., Anniston-Oxford, Ala. and Las Cruces, N.M. Lead in Number and Percentage of Yearly Job Gains, While Los Angeles-Long Beach-Glendale, Calif. and Monroe, Mich. Trail
Construction employment increased in 192, or 53 percent, of 360 metro areas between March 2024 and March 2025, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials noted fewer metro areas are adding construction jobs compared to a year ago amid signs that tariff uncertainty and tight labor markets are impacting demand for projects.
“In the past 12 months barely half of metro areas experienced an increase in construction employment, a notable slowing from last year,” said Ken Simonson, the association’s chief economist. “This may be a sign that investors and project owners are putting more investments on hold until they get more clarity about tariff and workforce policies that can affect the cost, timing and demand for construction.”
Construction employment declined over the year in 117 metro areas and was unchanged in 51 areas. The largest job loss occurred in Los Angeles-Long Beach-Glendale, Calif. (-8,800 jobs, -6 percent), followed by Riverside-San Bernardino-Ontario, Calif. (-6,200 jobs, -5 percent), Anaheim-Santa Ana-Irvine, Calif. (-5,100 jobs, -5 percent), Oakland-Fremont-Berkeley, Calif. (-4,700 jobs, -6 percent) and Seattle-Bellevue-Kent, Wash. (-4,500 jobs, -6 percent). The largest percentage decrease occurred in Monroe, Mich. (-17 percent, -400 jobs), followed by Lawton, Okla. (-14 percent, -300 jobs), Elizabethtown, Ky. (-13 percent, -300 jobs), Johnstown, Pa. (-11 percent, -200 jobs), and Bellingham, Wash. (-11 percent, -900 jobs).
Association officials noted that the two main challenges facing the construction industry right now are labor shortages and the potential impacts of higher tariffs on construction costs and demand. They noted they are working with Congress and the Trump administration to boost investments in construction education and training programs and to provide more lawful pathways for people to enter the country and work in the sector. They added that they are hopeful the administration will continue to take steps to limit the impacts of tariffs on key construction components.
“Encouraging more people to pursue high-paying careers in construction and taking steps to limit tariffs’ impacts on construction will provide the kind of certainty many developers are looking for,” said Jeffrey D. Shoaf, the association’s chief executive officer. “The demand appears to be there; it is just that quite a bit of it is waiting for the right signals to move forward with planned projects.”