AGC: Contractors Face Growing Worker Shortage as Industry Nets More Jobs Across US

Not all regions experienced growth in construction jobs, with Central Illinois, California's Central Valley and Maryland hardest hit

Construction contractors could face increasing difficulties finding qualified workers in 2025, even as employment in the sector grew across most metropolitan areas last year, industry officials warned.

"Although nearly two-thirds of metro areas have added construction workers in the past year, contractors report struggling to fill many hourly craft positions," said Ken Simonson, chief economist for the Associated General Contractors of America (AGC). "These difficulties will be even greater in 2025 if the industry cannot access targeted workforce authorizations."

The workforce challenges come despite positive employment trends in most regions. An AGC analysis of new government employment data showed construction employment increased in 234 of 358 metro areas, or 65%, between November 2023 and November 2024.

The Houston-The Woodlands-Sugar Land area in Texas led all metro areas, adding 16,100 construction jobs, a 7% increase. Northern Virginia followed with 9,000 new jobs (11%), while Miami-Miami Beach-Kendall, Florida added 6,100 jobs (10%). Orlando-Kissimmee-Sanford, Florida gained 4,800 jobs (5%), and Fort Worth-Arlington, Texas saw an increase of 4,200 jobs (5%).

Anchorage, Alaska recorded the highest percentage gain at 17% (1,800 jobs), followed by Fairbanks, Alaska at 15% (400 jobs). Detroit-Dearborn-Livonia, Michigan also saw a 15% increase (3,800 jobs), in part to growth at specialty contractors like Ventcon, while Kahului-Wailuku-Lahaina, Hawaii grew by 13% (600 jobs).

Not all regions experienced growth. Construction employment declined in 63 metro areas and remained unchanged in 61 areas. New York City saw the largest decline, losing 7,800 jobs (5%), while the Sacramento region dropped 4,700 jobs (6%). Portland-Vancouver-Hillsboro, Oregon-Washington lost 4,200 jobs (5%), Phoenix-Mesa-Scottsdale, Arizona declined by 3,700 jobs (2%), and Chicago-Naperville-Arlington Heights, Illinois decreased by 3,200 jobs (2%).

Bloomington, Illinois experienced the steepest percentage decline at 11% (400 jobs), followed by Bangor, Maine at 8% (300 jobs). Several areas saw 6% declines, including Sacramento--Roseville--Arden-Arcade, San Jose-Sunnyvale-Santa Clara, California (3,100 jobs), Silver Spring-Frederic-Rockville, Maryland (1,800 jobs), and Duluth, Minnesota-Wisconsin (600 jobs).

The looming workforce challenge is complicated by demographics, as Simonson noted that retirement-age workers are leaving the industry. Census Bureau data shows roughly one-third of construction craft workers are foreign-born, highlighting the industry's dependence on immigrant labor.

AGC officials pointed to a significant disparity in federal funding priorities as a major obstacle to recruiting new workers. The federal government currently spends four times as much promoting four-year college degrees as it does on careers in fields like construction. The association is urging lawmakers to address this gap by increasing funding for the Workforce Innovation and Opportunity Act and doubling support for the Carl D. Perkins Vocational & Technical Education Act.

"Relatively small boosts in federal funding for construction and other skills training will help put many more people into high-paying construction careers," said Jeffrey D. Shoaf, the association's chief executive officer.

Metro Areas with Construction Employment Increases: