Construction employment increased in 70% of U.S. states on a year-over-year basis in December, according to an analysis of federal data by the Associated General Contractors of America (AGC). In addition, 32 states added jobs on a month-over-month basis between November and December.
AGC officials said the positive growth in the majority of states reflected continued strong demand for construction. However, tight labor markets and limited available labor is continuing to prevent firms from adding even more workers to combat ongoing labor shortages.
“Construction demand remains strong in many parts of the country,” says Stephen Sandherr, CEO of the AGC. “But a paucity of qualified workers is holding back further employment gains and impacting project schedules and budgets.”
Thirty-five states added construction jobs between December 2022 and December 2023, led by strong numerical gains in Texas, California, Arizona, Minnesota, and Kentucky. On a percentage basis, South Dakota increased construction employment by 20.8% between December 2022 and December 2023.
New York lost the largest number and the largest percentage of construction jobs during the 12-month period from December 2022 to December 2023. Other states with large declines in employment included Colorado, North Carolina, and Washington.
Sandherr and the AGC say funding for construction-specific education programs can positively impact the ongoing labor shortage.
“The best way to address the industry’s workforce shortages in the long run is by investing in construction training and education programs,” Sandherr says. “It is time to stop urging every student to accumulate college debt when many could be making good money, debt-free, by starting careers in construction.”
