Report: Four out of five states added construction jobs in 2022

Forty U.S. states added construction jobs in 2022, according to an Associated General Contractors of America (AGC) analysis of federal employment data.

AGC officials say demand for many types of commercial construction projects remains strong and that firms likely would have added more people if they could find workers.

“Construction employment growth was less widespread in December than in some recent months as homebuilding slowed,” says Ken Simonson, AGC’s chief economist. “But most nonresidential contractors continue to report strong demand and that they would like to add more workers than are available.”

In December, 30 states added construction employees while industry employment declined in the other 20.

California added the most construction jobs in December (7,500 jobs, up 0.8 percent), followed by New York (6,400 jobs, up 1.7 percent), Pennsylvania (4,600 jobs, up 1.8 percent), Louisiana (3,300 jobs, up 2.6 percent) and Florida (3,300 jobs, up 0.5 percent). The largest percentage gain occurred in Louisiana (up 2.6 percent) followed by Arkansas (up 1.8 percent), Pennsylvania (up 1.8 percent), Rhode Island (up 1.7 percent) and New York (up 1.7 percent).

Missouri experienced the largest decrease in construction jobs in December (4,400 jobs, down 3 percent), followed by Washington (3,700 jobs, down 1.6 percent), New Jersey (3,400 jobs, down 2.2 percent) and Minnesota (2,600 jobs, down 2 percent). North Dakota had the largest percentage loss for the month (down 6.4 percent), followed by Missouri (down 3 percent) and Alaska (down 2.8 percent).

Twelve-month perspective

For full-year 2022, 40 states added construction jobs while industry employment declined in nine states. Employment was flat in Iowa.

California added the most jobs over the year (41,100 jobs, up 4.6 percent), followed by Florida (25,500 jobs, up 4.4 percent), Texas (18,300 jobs, up 2.4 percent), New York (13,100 jobs, up 3.5 percent), Tennessee (12,900 jobs, up 9.2 percent) and Utah (12,900 jobs, up 10.4 percent). Rhode Island had the largest percentage increase (up 17.3 percent), followed by Nevada (up 13.4 percent) bS Nebraska (up 10.9 percent).

New Jersey lost the largest number and percentage of construction jobs in 2022 (8,900 jobs, down 5.5 percent).

AGC officials say labor shortages in the industry remain a challenge for most firms. They urge Congress and the Biden administration to reform the immigration system to allow more people with construction skills to work in the industry. They also call for more funding for construction education and training programs.

“Investing in construction workforce development is one of the most effective ways to expand the middle class and create greater economic opportunity,” says Stephen Sandherr, AGC’s CEO. “Unfortunately, most federal education funding today goes to encouraging people to go to college and enter the service sector instead of preparing for careers in fields like construction.”