Construction employment is up in 39 states dating back to last May, with 26 states adding construction jobs from April to May of this year, according to an analysis of federal employment data released by the Associated General Contractors of America (AGC).
Association officials note that construction labor shortages remain acute even as demand for construction remains varied by project type.
“Although some project types are slowing, there is unrelenting competition for workers for data centers, manufacturing plants, power and infrastructure projects in much of the country,” says Ken Simonson, AGC’s chief economist. “The industry’s ‘war for talent’ is driving up labor-related costs faster than in other industries.”
Between May 2023 and May 2024, 39 states added construction jobs. Ten states and the District of Columbia lost jobs during that span. Employment remained unchanged in New Mexico.
Over the last 12 months, Texas added the most construction employees (35,000 jobs, up 4.3 percent), followed by Florida (27,700 jobs, up 4.4 percent), California (17,000 jobs, up 1.9 percent) and Michigan (15,900 jobs, up 8.4 percent). Alaska had the largest percentage increase over the last 12 months (up 20.4 percent, 3,400 jobs).
Maryland lost the most construction jobs over the last 12 months (5,000 jobs, down 3.1 percent), followed by Washington (3,900 jobs, down 1.7 percent), Pennsylvania (3,000 jobs, down 1.2 percent) and Colorado (2,300 jobs, down 1.2 percent). The largest percentage loss was in Washington, D.C. (down 3.3 percent, 500 jobs).
For May, industry employment increased in 26 states. It declined in 22 states and in Washington, D.C., and it was unchanged in Rhode Island and North Dakota.
Ohio added the largest number and percentage of jobs in May (7,000 jobs, up 3 percent). Other states with large monthly employment increases were Florida (5,500 jobs, up 0.8 percent), Texas (5,500 jobs, up 0.6 percent) and New York (5,200 jobs, up 5.2 percent).
Tennessee lost the most construction jobs from April to May (1,700 jobs, down 1.1 percent), followed by Wisconsin (1,500 jobs, down 1.1 percent) and Oklahoma (1,100 jobs, down 1.3 percent). Maine lost the highest percentage of jobs (down 2.1 percent, 700 jobs).
AGC officials says a recent report shows the federal government significantly underinvests in workforce development programs needed to expose workers to careers in fields like construction and prepare them for those careers. The association urges Congress and the Biden administration to boost funding for construction education and training programs.
“It is hard to recruit people into high-paying construction careers when four out of every five federal dollars are being used to urge students to go to college and earn a four-year degree,” says Jeffrey Shoaf, AGC’s CEO. “If we want to build the economy of the future, we need to invest in the workforce of today.”
