The landscape of construction employment across the United States presents a complex mosaic, with growth in some regions contrasted by declines in others. According to an analysis by the Associated General Contractors of America, as reported by the Charlotte Mecklenburg Times, 234 metro areas, or 65 percent of 358 total, saw an increase in construction jobs between November 2023 and November 2024. Nonetheless, Ken Simonson, the association’s chief economist, highlighted a looming challenge, stating, "Although nearly two-thirds of metro areas have added construction workers in the past year, contractors report struggling to fill many hourly craft positions." Simonson adds a cautionary note on the future, foreseeing "these difficulties will be even greater in 2025 if the industry cannot access targeted workforce authorizations."
While areas such as Houston and Northern Virginia are experiencing substantial job growth, Phoenix has been identified among the regions with decreasing construction employment. A report by the Phoenix Business Journal reveals that the Phoenix metro has lost about 3,700 construction jobs, a 2% decrease from the previous year. Tucson also saw a marginal decline. This trend in Arizona poses concern amidst a generally positive national outlook. Notwithstanding, even in areas of growth, filling positions remains an issue, indicating a broader issue within the construction industry's labor force.
The loss of construction jobs in certain areas such as Phoenix and Tucson contrasts with the likes of Houston-The Woodlands-Sugar Land, Texas, which lead the growth with an addition of 16,100 construction jobs. According to the Charlotte Mecklenburg Times, this represents a 7 percent increase from the year prior. Northern Virginia followed closely, adding 9,000 jobs, representing an 11 percent growth. These regions head the pack in a national trend that otherwise exhibits significant variations geographically.
Immigrants play a vital role in the construction labor force, particularly as more long-time workers approach retirement age. Around one-third of construction craft workers are estimated to be foreign-born. This dependency on the immigrant workforce intertwines with policy and legislative action. For example, the urge from association officials for lawmakers to pass measures that enhance training funding reflects a proactive approach to sustaining this sector's vitality. "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, in sentiments echoed by the Phoenix Business Journal.
Differences in construction job trends across metro areas show the challenges the sector faces. While some regions experience job losses and potential labor shortages, it's clear that policy changes and training will be crucial.
