ARLINGTON, VA. — Construction employment increased in only 42 percent of metro areas between May 2025 and May 2026, according to an analysis of new government employment data by the Associated General Contractors of America (AGC), an Arlington-based trade association for the construction industry. Over the past year, 152 metro areas added construction jobs, 161 lost jobs and employment was unchanged in 47 areas. The AGC cites rising costs, ebbing demands for some sectors and political threats to various types of infrastructure construction for the dip in employment .
“Even fewer areas are likely to have job increases later this year if Congress fails to renew federal legislation to fund highway and transit construction after the current law expires in September,” says Macrina Wilkins, director of market insights at AGC, referring to the Infrastructure Investment and Jobs Act. The surface transportation law, which allocates federal funding for highways, public transit and intercity passenger rail, was ratified by former President Joe Biden and expires on Sept. 30.
On the costs front, the U.S. Bureau of Labor Statistics (BLS) found that the May producer price index (PPI), which tracks movement in wholesale pricing between domestic producers, is up 6.5 percent on an annualized basis, the highest level since November 2022. The PPI for construction materials is up 5.6 percent over that same period.
Of the 360 metro areas tracked by AGC, Houston-Pasadena-The Woodlands, Texas added the most construction jobs over the year (12,100 jobs, or 5 percent), followed by:
- St. Louis, Mo.-Ill. (10,500 jobs, 13 percent)
- Baton Rouge, La. (8,400 jobs, 18 percent)
- Minneapolis-St. Paul-Bloomington, Minn.-Wis. (7,200 jobs, 7 percent) and
- Charlotte-Concord-Gastonia, N.C.-S.C. (6,400 jobs, 8 percent)
The largest job loss occurred in Riverside-San Bernardino-Ontario, Calif. (-6,100 jobs, -5 percent), followed by:
- Portland-Vancouver-Hillsboro, Ore.-Wash. (-5,200 jobs, -7 percent)
- Sacramento-Roseville-Folsom, Calif. (-4,400 jobs, -6 percent)
- Pittsburgh, Pa. (-4,300 jobs, -7 percent) and
- the Oakland-Fremont-Berkeley, Calif. metro division (-3,200 jobs, -4 percent)
The steepest percentage loss occurred in Lawton, Okla. (-21 percent, -400 jobs), followed by Monroe, Mich. (-9 percent, -200 jobs) and Niles, Mich. (-9 percent, -200 jobs).