Construction employment expanded in 30 U.S. states and the District of Columbia over the past year, according to the latest analysis of federal labor data released by the Associated General Contractors of America (AGC). The report highlights how investments in infrastructure and data center development continue to support hiring, although growth remains uneven across different regions.
AGC’s analysis compared employment figures from May 2025 to May 2026 and found that while many states experienced workforce gains, others saw construction payrolls decline due to slower activity in several building sectors.
Ken Simonson, AGC’s chief economist, said the construction labor market has remained relatively balanced in recent months.
“Strong demand for data centers and infrastructure work is supporting employment in many states, but weaker activity in other construction segments is limiting broader job growth,” Simonson said.
Texas Leads the Nation in Annual Job Growth
Texas recorded the largest increase in construction employment over the 12-month period, adding 18,700 jobs, representing a 2.1 percent increase.
Other states posting notable gains included:
- North Carolina: 13,600 new jobs
- Wisconsin: 9,000 new jobs
- Minnesota: 8,500 new jobs
- Illinois: 8,100 new jobs
When measured by percentage growth, Wisconsin ranked first with a 6.2 percent increase in construction employment. Minnesota followed at 6.0 percent, while Alabama grew by 5.7 percent and Nebraska posted a 5.6 percent increase.
Several States Report Construction Job Losses
Not every state experienced growth.
California reported the largest decline in construction employment over the year, losing 13,100 jobs, equivalent to a 1.5 percent decrease. Other states with notable losses included Georgia, New Jersey, Michigan and Virginia.
New Mexico experienced the steepest percentage decline, with construction employment falling by 3.1 percent. Alaska, New Hampshire and New Jersey also recorded significant percentage decreases.
Monthly Employment Trends Remain Mixed
The latest monthly data also reflected varying conditions across the country.
Between April and May 2026, construction employment increased in 23 states and the District of Columbia, declined in 22 states and remained unchanged in five states.
Texas again led monthly hiring by adding 3,600 construction jobs. Wisconsin followed with 2,900 new positions, while Alabama added 2,800 jobs. Minnesota and Idaho also reported strong monthly gains.
Idaho posted the highest monthly percentage increase at 2.6 percent, followed by Alabama, South Dakota, Kansas and Wisconsin.
On the other hand, Massachusetts experienced the largest monthly decline after losing 4,200 construction jobs. Virginia, Montana, New Mexico and Pennsylvania also reported notable monthly workforce reductions.
Montana recorded the sharpest percentage decline during the month at 4.9 percent, followed by New Mexico, West Virginia and Massachusetts.
AGC Warns Policy Challenges Could Affect Future Hiring
Although construction employment has remained positive in many parts of the country, AGC leaders cautioned that future job growth may depend on government policy decisions as much as market conditions.
Jeffrey D. Shoaf, the association’s chief executive officer, said political debates surrounding infrastructure funding and opposition to certain data center developments could slow hiring in the months ahead.
He emphasized that continued investment in transportation systems and technology infrastructure is essential for maintaining economic competitiveness while creating well-paying construction jobs across the United States.
According to AGC, the pace of future construction employment growth will largely depend on sustained public and private investment in infrastructure projects and the expanding demand for technology-related facilities.
