Construction employment increased in 36 states and the District of Columbia from July 2025 to July 2026, while 28 states and D.C. added jobs between June and July, according to an analysis of new federal data released by the Associated General Contractors of America. Association officials cautioned, however, that several policy developments, including uncertainty surrounding tariffs, highway funding and data center development, threaten to undermine near-term employment increases.  “Construction employment gains were widespread in July on both a monthly and year-over-year basis,” said Ken Simonson, the association’s chief economist. “Nevertheless, there are several risks to continuing increases in employment, including a potential lapse in federal highway funding, growing opposition to data centers, and ongoing shifts in tariff policy.”  Between July 2025 and July 2026, 36 states and the District of Columbia added construction jobs, 13 states shed jobs, and employment was unchanged in Vermont. Texas added the most construction jobs (17,500 jobs, 1.9 percent), followed by Louisiana (15,500 jobs, 11.4 percent), North Carolina (15,400 jobs, 5.5 percent), Ohio (13,700 jobs, 5.3 percent) and Illinois (12,700 jobs, 5.3 percent). Louisiana posted the largest percentage gain over 12 months, followed by Wyoming (6.2 percent, 1,400 jobs), Oklahoma (5.5 percent, 4,900 jobs), North Carolina and Nebraska (5.5 percent, 3,500 jobs).  California lost the most construction jobs from July 2025 to July 2026 (-6,700 jobs, -0.7 percent), followed by Virginia (-5,800 jobs, -2.5 percent), New York (-5,700 jobs, -1.5 percent), New Jersey (-4,900 jobs, -2.9 percent) and Georgia (-3,200 jobs, -1.4 percent). The largest percentage loss was in Alaska (-3.7 percent, -700 jobs), followed by New Jersey, Virginia, New Hampshire (-2.5 percent, -800 jobs) and Maine (-2.5 percent, -900 jobs).  For the month, industry employment increased in 28 states, declined in 18 states and D.C. and was unchanged in Oregon, North Dakota, Delaware and Nebraska. Illinois added the most construction jobs (3,200 jobs, 1.3 percent), followed by Ohio (3,000 jobs, 1.1 percent), California (2,900 jobs, 0.3 percent), Florida (2,900 jobs, 0.4 percent) and Louisiana (2,300 jobs, 1.5 percent). The largest percentage gain occurred in Mississippi (1.9 percent, 1,000 jobs), followed by Rhode Island (1.8 percent, 400 jobs), Louisiana (1.5 percent, 2,300 jobs), and Kansas and Illinois (1.3 percent, 1,000 and 3,200 jobs, respectively).  Texas lost the most construction jobs from June to July (-3,400 jobs, -0.4 percent), followed by Alabama (-2,200 jobs, -1.9 percent), Washington (-2,100 jobs, -1.0 percent), Arizona (-1,300 jobs, -0.6 percent), Virginia (-1,300 jobs, -0.6 percent) and New Jersey (-1,300 jobs, -0.8 percent). The largest percentage loss was in West Virginia (-2.8 percent, -1,000 jobs), followed by Alabama, D.C. (-1.4 percent, -200 jobs), Vermont (-1.2 percent, -200 jobs) and Alaska (-1.1 percent, -200 jobs).  Association officials said that several policy developments could derail some of the industry's strongest sources of demand. Growing state and local resistance to data center development, the lack of progress in Congress on a long-term highway and transit bill, and frequent changes in tariffs on construction materials all pose significant threats to future construction activity.  “Construction firms continue to add workers where demand remains strongest,” said Jeffrey D. Shoaf, the association's chief executive officer. “Policymakers can help sustain that momentum by passing a new highway and transit funding bill before the current law expires on September 30, supporting responsible growth in data centers, and avoiding policies that increase the cost of key construction materials and create unnecessary uncertainty for construction employers.”

The producer price index for inputs to new nonresidential construction rose 7.1 percent from July 2025 to July 2026 as numerous input prices accelerated to multi-year highs, according to an analysis by the Associated General Contractors of America of government data. Association officials called for reduced and stable tariffs for construction inputs, along with prompt enactment of a highway and transit funding bill. “Construction firms are being hit with outsized cost increases for a host of materials and also labor,” said Ken Simonson, the association’s chief economist. “Unless there is relief from tariffs or additional funding for highway and transit projects, both private and public construction work face cutbacks." As before, the largest price increases affected petroleum products and metals that are subject to tariffs of up to 50 percent. The producer price index for diesel fuel, which reflects prices at the refinery or fuel terminal level, jumped 44.2 percent from July 2025 to last month despite declining for two months in a row. The index for liquid asphalt soared 45.2 percent year-over-year, following a 1.2 percent monthly gain in July. Metals prices also rose steeply over the past 12 months. Prices climbed year-over-year by 40.5 percent for aluminum mill shapes, 22.5 percent for steel mill products and 18.4 percent for copper and brass mill shapes. Several other construction materials prices increased at the fastest rate in years. For instance, the index for lumber and plywood jumped 9.9 percent, the most since March 2022. The index for paving mixtures and blocks rose 6.6 percent, a three-year high. And the index for construction plastics climbed 5.0 percent, the most since January 2023. Wages for construction workers have also been accelerating, while overall private sector wage gains are moderating, Simonson noted. The government reported on August 7 that average hourly earnings for production and nonsupervisory employees, a category that covers most craft workers and office workers who aren’t supervisors, rose 5.2 percent from July 2025 to July 2026, the largest year-over-year increase since January 2024. The same measure for the entire private sector rose 3.2 percent, the least in more than five years. Association officials noted that the accelerating increases in construction costs mean that more projects will be scaled back or abandoned unless tariffs are lessened or federal funding for projects such as highways and transit are increased. They added that greater certainty regarding trade policy, along with enactment of a long-term federal surface transportation bill, would enable contractors to estimate project costs more accurately, bid work with greater confidence, invest in workers and equipment, and keep projects moving efficiently. "Price relief and additional funding are both essential for contractors, project owners, investors and governments," said Jeffrey D. Shoaf, chief executive officer of the Associated General Contractors of America. "Providing lower rates and greater certainty on trade policy while enacting a long-term surface transportation bill would help contractors bid work with greater confidence, invest in their businesses and workforce, and ensure critical infrastructure projects continue moving forward."