For the first time since 2021, fewer than half of the nation’s metro areas added construction jobs between Aug. 2024 and Aug. 2025, according to an analysis by the Associated General Contractors of America (AGC) of new construction employment data. AGC officials noted that many private-sector developers appear to be putting projects on hold amid rising prices caused by tariffs, workforce shortages and higher interest rates. The table below uses this data to estimate electrical contractor employment trends.
“Construction employment has stalled or retreated in more and more areas as owners pull back on projects in the face of higher costs,” said Ken Simonson, the association’s chief economist in the press release. “Workforce shortages, tariffs and higher interest rates are inflating construction costs and schedules to the point where many projects no longer appear to make sense to developers.”
Only 177 metro areas or 49% added construction employees between Aug. 2024 and Aug. 2025. For the sixth-straight month, Arlington-Alexandria-Reston, VA-WV added the most construction jobs (8,200 jobs or +9%). The neighboring Washington, DC-MD. area was in second place with a gain of 6,600 jobs or +14% — the largest percentage increase of any area. Kokomo, IN, also had a +14% gain, adding 300 construction jobs over 12 months.
Construction employment declined over the year in 125 metro areas and was unchanged in 58 areas. The largest job loss occurred in New York City (-7,900 jobs, -5%), followed by Riverside-San Bernardino-Ontario, CA (-6,500 jobs, -6%); Los Angeles-Long Beach-Glendale, CA. (-6,000 jobs, -6%); and Baton Rouge, LA (-5,700 jobs, -11%). The largest percentage decrease occurred in Baton Rouge, followed by Lake Charles, LA. (-9%, -1,000 jobs) and two areas with losses of -8% (-100 jobs): Walla Walla, WA, and Hanford-Corcoran, CA.
A separate government report showed there were 188,000 job openings in construction, seasonally adjusted, at the end of August — a -38% decline from a year earlier and the lowest total since 2017. This decline suggests even fewer areas are likely to have construction employment increases in the near future, Simonson said. A prolonged federal shutdown could also impact construction employment if public works projects are suspended or fail to get needed approvals to start because federal officials are unavailable to sign off, he added.
AGC officials urged the administration and Congress to quickly resolve the spending dispute to avoid significant impacts on many infrastructure and public works projects. They also urged federal officials to address labor shortages by passing short-term relief measures like the Essential Workers for Economic Advancement Act and the Dignity Act and boost federal funding for construction education and training.
“With the Fed lowering interest rates, now is the time to address workforce shortages and provide tariff relief to boost demand for construction,” said Jeffrey Shoaf, AGC chief executive officer, in the press release. “In addition, avoiding the kind of prolonged federal shutdown that will undermine necessary approval processes that can slow down the delivery of necessary public works projects.”
