Construction Employment Dips In August As Project Owners Put Plans On Hold, Immigration Enforcement Shrinks Supply Of Available Workers

Association Survey Finds Tariffs, Other Policy Shifts Leading to Project Cancellations and Delays,While Substantial Share of Firms Reports Disruptions from Stepped-Up Immigration Enforcement Activity

Construction sector employment declined by 7,000 positions in August and has remained little changed since December, according to an analysis of new government data the Associated General Contractors of America released today. Association officials noted the results are consistent with a surveythe association released last week that found many owners have canceled, deferred, or scaled back projects due to tariffs and labor shortages.

"The latest figures show that nonresidential construction-not only homebuilding-has stalled," said Ken Simonson, the association's chief economist. "That fits with reports that owners have hit the pause button on many projects, in large part because of uncertainty over the impact of tariffs and other policy upheavals, as our workforce survey found."

Despite the lack of employment growth, the unemployment rate for recent construction industry workers in August was only 3.2 percent, tying the record low for August set in 2024, Simonson noted. He said the low industry rate likely is a result of workers leaving the industry to avoid being swept up in immigration enforcement actions, as the association's survey also indicated.

Construction employment in August totaled 8,295,000, seasonally adjusted, a decline of 7,000 from July and the third consecutive monthly decrease of 13,000 from July. Industry employment has risen by a net of only 6,000 or less than 1 percent since December.

In August, nonresidential construction firms shed a net 1,200 employees, as losses of 3,300 at nonresidential building construction firms and 200 among specialty trade contractors offset a gain of 2,300 workers at heavy and civil engineering firms. Residential construction employment declined by 6,100, including 900 jobs at homebuilders and other residential building construction firms and 5,200 at specialty trade contractors.

The 2025 AGC of America-NCCER Workforce Survey found that 16 percent of construction firms reported owners had canceled, postponed, or scaled back projects resulting from changes in demand or need due to tariffs. Roughly one-fourth, 26 percent, of contractors experienced project setbacks resulting from changes in demand or need due to policy changes in areas such as federal funding, taxes, or regulations. In addition, 28 percent of firms reported immigration enforcement actions in the past six months had affected their projects.

Association officials said these policy upheavals affecting costs, funding, and employment were delaying vitally needed infrastructure, job-creating manufacturing projects, and much-needed housing. They urged officials in Washington to stabilize trade policy and to better target immigration enforcement in a way that does not disrupt construction

"The economy depends on construction," said Jeffrey D. Shoaf, the association's chief executive officer. "Constant changes in tariffs and other federal policies, and misdirected immigration enforcement are interfering with the industry and the broader economy."

View the construction employment data.View the survey results here.