AGC Says Construction Sector Added 19,000 Jobs In February

Arlington, VA – Construction sector employment increased by 19,000 positions in February as all five nonresidential and residential segments of the industry added workers, according to an analysis of new government data the Associated General Contractors of America. Association officials warned that growing market uncertainty caused by tariffs and worsening labor shortages caused by evolving immigration policies could undermine future employment growth in the sector.

“Construction job growth hit a five-month high in February, following several months of lackluster gains,” said Ken Simonson, the association’s chief economist. “However, industry employment and wage growth have been slowing over much of the past year. Uncertainty, especially regarding tariffs and immigration policies, is causing new projects to be paused and may keep construction employment from rising further.”

Construction employment in February totaled 8,310,000, seasonally adjusted, an increase of 19,000 from January. Headcount rose by 174,000 jobs or 2.1 percent during the past 12 months, a slowdown from 189,000 jobs (2.4 percent) added in the previous 12 months. Nonresidential construction firms added 123,000 employees (2.6 percent) to payrolls from February 2024 to last month, somewhat fewer than the 148,000 (3.2 percent) added a year earlier. Residential construction employment rose by 51,000 jobs (1.5 percent) from February 2024 to last month, which amounted to a slight pickup from the 41,000 jobs (1.3 percent) added in the previous 12 months.

In February, nonresidential construction firms added 6,000 workers, with gains of 1,700 in building construction, 2,000 in specialty trades, and 2,500 in heavy and civil engineering construction. Residential construction employment climbed by 12,700, as homebuilders and other residential building construction firms added 100 positions and residential specialty trade contractors added 12,600.

Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—climbed by 4.0 percent over the year to $36.55 per hour. In the previous 12 months, the same measure of pay increased 4.5 percent.

Association officials said growing uncertainty about whether tariffs will be imposed and for how long is already driving up prices for key construction materials. They added that the Trump administration’s decision to end work authorizations for workers from a variety of countries is shrinking an already tight labor market, making it hard for firms to keep pace with construction demand.

“It is always great to see the industry adding new construction jobs,” said Jeffrey Shoaf, the association’s chief executive officer. “But federal officials need to boost funding for construction education and training, and expand work authorization programs for the sector, for the industry to have enough people to keep pace with demand.”

View the construction employment data.

About The Associated General Contractors Of America

The Associated General Contractors of America (AGC) is a leading association for the construction industry. AGC represents more than 26,000 firms, including over 6,500 of America’s leading general contractors, and over 9,000 specialty-contracting firms. More than 10,500 service providers and suppliers are also associated with AGC, all through a nationwide network of chapters. To learn more, visit www.agc.org.