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Tariff and employer tax fears hit US construction employment in April

Concerns around recently announced trade tariffs and future tax rates for employers are likely to have impacted April construction employment figures in the US, according to Associated General Contractors (AGC).

Construction in the US is suffering from a lack of skilled workers

AGC analysis of new government employment data showed that construction employment increased in 184 out of 360 metro areas between April 2024 and April 2025.

Association officials said that while demand for certain types of project was boosting construction employment in some metro areas, other areas were struggling to add jobs amid worker shortages and economic uncertainty.

“Demand for infrastructure, public facilities, and data centres is helping boost construction employment in many parts of the country. But that demand has not been enough to offset labour shortages and broader economic uncertainty in many other parts of the country,” said Macrina Wilkins, the association’s senior research associate.

Arlington-Alexandria-Reston, Va.-W.Va. added the most construction jobs (7,700 jobs or +9%) between April 2024 and April 2025, followed by Dallas-Plano-Irving, Texas (5,300 jobs or +3%); Cincinnati, Ohio-Ky.-Ind. (4,800 jobs, +9%); Miami-Miami Beach-Kendall, Fla. (4,300 jobs, +7%); and Washington, D.C.-Md. (3,800 jobs, +8%).

Meanwhile, construction employment declined over the year in 120 metro areas and was unchanged in 56 areas. The largest job loss occurred in Riverside-San Bernardino-Ontario, Calif. (-6,000 jobs, -5%), followed by Los Angeles-Long Beach-Glendale, Calif. (-5,900 jobs, -4%); New York City, N.Y. (-5,400 jobs, -4%); Seattle-Bellevue-Kent, Wash. (-4,400 jobs, -6%); and Nassau County-Suffolk County, N.Y. (-4,100 jobs, -5%).

Jeffrey D. Shoaf, the association’s chief executive officer, said, “Some of the uncertainties impacting construction demand in April have been addressed even as demand for certain types of projects remains strong.

“Federal officials can help boost future construction employment growth by investing in construction education and training programs and establishing more lawful pathways for people to enter the country to work in construction.”

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