Fewer Than Half of Metro Areas Add Construction Jobs From July 2025 to July 2026
Construction employment grew in fewer than half of U.S. metro areas between July 2025 and July 2026, even as contractors building data centers and factories continue to struggle to hire, according to an Associated General Contractors of America analysis of new government employment data reported by tEDmag.
The Numbers
Construction employment increased in 173, or 48%, of 360 metro areas over the year, AGC found. Employment declined in 127 metro areas and was flat in 60 others.
Houston-Pasadena-The Woodlands, Texas added the most construction jobs over the year at 13,100, a 5% gain, followed by Baton Rouge, Louisiana (12,400 jobs, 27%); St. Louis, Missouri-Illinois (11,400 jobs, 14%); Columbus, Ohio (8,500 jobs, 14%); and Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin (7,200 jobs, 7%). Baton Rouge posted the largest percentage gain, followed by Davenport-Moline-Rock Island, Iowa-Illinois (15%, 1,700 jobs); Columbus; St. Louis; and Sandusky, Ohio (13%, 300 jobs).
On the losing end, the Riverside-San Bernardino-Ontario, California metro area shed the most jobs (-6,100, -5%), followed by the Oakland-Fremont-Berkeley, California metro division (-4,400, -6%); Pittsburgh, Pennsylvania (-3,800, -6%); the Atlanta-Sandy Springs-Roswell, Georgia metro division (-3,700, -3%); and New York City (-3,300, -2%). The steepest percentage losses hit smaller metros: Lawton, Oklahoma (-12%, -200 jobs), Niles, Michigan (-9%, -200 jobs), and two areas tied at -7%, Lake Havasu City-Kingman, Arizona (-400 jobs) and Walla Walla, Washington (-100 jobs).
“Demand for workers is currently very unbalanced,” said Ken Simonson, AGC’s chief economist, per tEDmag. “Contractors that are building data centers, power projects and advanced manufacturing plants can’t find enough skilled workers, while firms in a majority of metro areas are stagnating or shedding employees.”
AGC CEO Jeffrey D. Shoaf noted the association’s annual workforce survey, conducted with NCCER, was set for release September 3 and would detail how much data center and related demand is contributing to tight labor conditions industry-wide.
What It Means for Subcontractors
- Subs chasing work in booming metros like Houston, Baton Rouge, St. Louis and Columbus should expect continued wage pressure and tighter crew availability, since these markets are absorbing disproportionate hiring demand tied to data centers and advanced manufacturing.
- Contractors in declining metros, including Riverside, Oakland, Pittsburgh and Atlanta, may find more available labor and softer bid competition, but should also expect fewer new project awards until broader nonresidential demand recovers.
- Firms with flexible, multi-region crews are best positioned to capture the uneven demand AGC describes, shifting resources toward data center and manufacturing corridors rather than waiting for a broad-based recovery.
- Workforce development investment remains the binding constraint even in soft markets. Contractors that can source and train skilled trades now will have an edge as data center and reshoring-driven demand continues to concentrate hiring in a shrinking set of metro areas.
