Construction job growth slows across US metro areas amid funding uncertainty

Construction employment increased in 166 of 360 metro areas between March 2025 and March 2026, while 151 areas lost jobs and 43 remained unchanged, according to an analysis of federal employment data by the Associated General Contractors of America.

Association officials said uncertainty over project costs and delays in development activity are weighing on construction hiring nationwide. They also urged Congress to approve a new highway and transit funding bill before the current law expires in September.

“Owners in many metro areas are delaying, scaling back, or even canceling projects amid market uncertainties and higher materials prices, which is undermining construction employment levels,” said Ken Simonson, the association’s chief economist. “One step policymakers in Washington can take to keep job losses in check is to pass a transportation funding bill before the current law expires in September.”

Houston-Pasadena-The Woodlands, Texas, added the largest number of construction jobs over the year, gaining 10,600 jobs, or 4%. Other metro areas with notable gains included St. Louis, which added 6,700 jobs, Charlotte with 5,000 jobs, Baton Rouge with 5,000 jobs and Austin with 4,600 jobs.

Idaho Falls, Idaho, posted the largest percentage increase at 15%, followed by Eau Claire, Wisconsin, at 14%. Several metro areas, including Bloomington, Indiana; Terre Haute, Indiana; Battle Creek, Michigan; Las Cruces, New Mexico; and Weirton-Steubenville, West Virginia-Ohio, each recorded gains of 12%.

New York City recorded the largest construction job loss, shedding 5,400 jobs, or 4%. Other large declines occurred in Portland, Oregon-Washington; Nassau County-Suffolk County, New York; Sacramento, California; and the Los Angeles metro division.

Lawton, Oklahoma had the steepest percentage decline at 22%, followed by Fairbanks-College, Alaska at 12%, Houma-Bayou Cane-Thibodaux, Louisiana at 11% and Lake Havasu City-Kingman, Arizona at 10%.

Association CEO Jeffrey D. Shoaf said Congress should move quickly to finalize a transportation funding package.

“Funding improvements to the way people and goods move within the economy provides two clear benefits: it boosts immediate demand for construction and supports broader economic growth,” Shoaf said. “Getting started on a bill is helpful; finishing it on time is essential.”