California Construction News staff writer
Construction employment rose over the past year in 34 states and the District of Columbia, but California saw one of the largest job losses, according to new federal data analyzed by the Associated General Contractors of America (AGC).
Between December 2024 and December 2025, California’s construction workforce fell by 19,800 jobs, a 2.2 percent decline. Only New York, Washington, Nevada, and New Jersey experienced steeper losses in absolute or percentage terms. Nationwide, 34 states and D.C. added jobs during the year, with Texas (+15,700 jobs, 1.8 percent) and Hawaii (+3,400 jobs, 8.7 percent) posting the largest gains.
For the month of December, 20 states and D.C. saw construction employment rise, while 26 states experienced declines. California lost 5,000 jobs in December alone, representing a 0.6 percent decrease. Minnesota recorded the largest monthly decline both numerically (-9,900 jobs) and as a percentage (-6.6 percent). Arizona and Montana posted the highest monthly gains.
“Although a majority of states added construction employees over the year, employment has stalled in the latest month,” said Ken Simonson, AGC chief economist. “Too many projects have been postponed or canceled due to lack of funding, financing costs, or policy uncertainty about tariffs and immigration enforcement.”
Industry officials noted that slowdowns in highway and infrastructure funding are contributing to stagnant or declining employment in many states, including California. They urged Congress to enact the next federal surface transportation program by September 30, when the current authorization expires, to provide certainty for contractors.
“Contractors need to know that highway funds will keep flowing before they can commit to hiring or retaining essential workers,” said AGC CEO Jeffrey D. Shoaf. “It’s imperative that Washington provide that certainty by working now on the specifics of the next surface transportation bill.”
The latest data highlight the uneven recovery in construction across the U.S., with states such as Texas, North Carolina, and Ohio showing strong year-over-year gains, while California, Nevada, and New York face ongoing workforce pressures.
