Construction Employment Grew Across 35 States in August

Contractors should account for localized labor shifts as state-level employment trends diverge.

Updated on Sept. 24, 2026 in Employment

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Construction employment rose across 35 U.S. states in August 2026, though regional labor market fragmentation continues to impact subcontractor availability and project timelines. AI Illustration. Upload story photo >

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Construction employment rose in 35 states and the District of Columbia between August 2025 and August 2026, even as 15 states shed jobs over the same period. This year-over-year growth occurred alongside a monthly increase in 31 states between July and August 2026.

Why it matters

Operators face a fragmented labor market where regional demand dictates resource availability and project timelines. While broad growth has persisted, future job stability remains vulnerable to shifting material tariffs, funding delays, and data center moratoriums.

Ohio led the nation with 17,800 new construction jobs during the 12-month period, while Louisiana saw the largest percentage gain at 12.7%. Conversely, California shed 6,900 jobs year-over-year, and Colorado saw the largest monthly decline of 2,200 jobs between July and August 2026.

The players

Associated General Contractors of America

A national trade association representing construction firms that advocates for industry policy and tracks workforce data.

The details

The Associated General Contractors of America calculated these figures using federal data to track industry employment trends. The data highlights a stark divergence between states like Ohio, which added 4,600 jobs in a single month, and states struggling with contraction. Businesses must monitor these regional labor dynamics to anticipate shifts in subcontractor availability and labor costs.

Timeline

  1. August 2025 marked the beginning of the 12-month comparison period.

  2. July 2026 served as the start of the one-month comparison window.

  3. August 2026 concluded both the 12-month and one-month comparison periods.

Market Landscape

This employment data reflects the latest installment of the Associated General Contractors of America monthly state-by-state report. It illustrates a divergent national landscape where project-specific demand often outweighs broad economic conditions.

Project managers should build contingencies into bids to account for volatile regional labor availability and potential cost spikes from material tariffs. Factor in local infrastructure funding stability when forecasting labor needs for the coming quarter.

The takeaway

Operators must evaluate labor market health at the state level rather than relying on national averages to assess workforce risk. Monitor upcoming federal highway and transit funding announcements, as these will likely serve as leading indicators for regional construction activity.

Further reading

For broader trends in the workforce, see our Employment section.

Source note: This article includes information reported by Mecklenburg Times.

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