Construction Job Growth Stalls in Most Metro Areas

Less than half of metro areas added construction jobs in 2025 amid concerns over weak demand and worker shortages

Published on Feb. 27, 2026

According to an analysis by the Associated General Contractors of America, just under half of metro areas added construction jobs between December 2024 and December 2025. Association officials noted that construction job growth has stalled in many parts of the country due to contractor worries about weak demand and ongoing challenges finding enough workers to hire.

Why it matters

The stagnant construction job growth highlights the broader economic challenges facing the industry, including slowing demand for many types of construction projects and persistent labor shortages. These trends could have ripple effects on local economies that rely heavily on construction activity.

The details

The analysis found that 176 metro areas, or 49%, added construction jobs during the period, led by gains in Washington D.C., Kansas City, and Arlington-Alexandria-Reston. However, 129 metro areas saw construction employment decline, with the largest losses in Las Vegas, New York City, and Riverside-San Bernardino-Ontario. Association officials said contractors have dampened expectations for most construction market segments compared to last year and continue to struggle to find enough qualified workers to hire.

  • Between December 2024 and December 2025

The players

Associated General Contractors of America

A national construction industry trade association that conducted the analysis of construction employment data.

Ken Simonson

The chief economist for the Associated General Contractors of America.

Jeffrey D. Shoaf

The chief executive officer of the Associated General Contractors of America.

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What they’re saying

“Construction hiring has stalled or declined in a majority of metro areas as owners have put projects on hold.”

— Ken Simonson, Chief Economist (Associated General Contractors of America)

“The best way to boost construction employment is to drive new demand and make it easier to find qualified workers.”

— Jeffrey D. Shoaf, Chief Executive Officer (Associated General Contractors of America)

What’s next

Association officials urged Congress to pass a new surface transportation bill before the current law expires and to take steps to address workforce shortages in the construction industry.

The takeaway

The stagnant construction job growth in most metro areas underscores the ongoing challenges facing the industry, including weakening demand for many types of projects and persistent labor shortages. Addressing these issues will be crucial for boosting construction employment and supporting local economies that rely on the sector.