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US construction employment stalls amid tariff and labour uncertainty
01 July 2025
Construction employment increased in 180, or exactly 50%, of 360 metro areas between May 2024 and May 2025, according to an analysis by the Associated General Contractors of America of new government employment data.
Construction employment growth in the US has stalled in many parts of the country amid growing uncertainty about tax, tariff and labour policy. Image: Adobe Stock
Association officials said the construction employment growth has stalled in many parts of the country amid growing uncertainty about tax, tariff and labour policy.
“Only half of metro areas experienced a year-over-year gain in construction jobs – the fewest since March 2021,” said Ken Simonson, the association’s chief economist.
“This appears to support other indications that investors and developers are delaying or cancelling planned projects until they know how severely they’ll be affected by evolving tariff and workforce policies.”
Association officials noted that the latest construction spending figures released in early June show construction spending declined during the past 12 months.
They added that developers and other construction owners appear more hesitant to launch construction projects until there is more certainty about tax rates, materials costs and worker availability.
The association added that the sooner that the government provided certainty on a host of issues, the more likely construction demand would rebound.
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