Seasonally adjusted construction employment fell from June to July in 22 states, rose in 22 states, and was flat in six states and the District of Columbia, according to AGC’s analysis of Bureau of Labor Statistics (BLS) data posted on Tuesday. California experienced the largest decline in construction from June to July (-3,300 jobs or -0.4%), followed by New Jersey (-1,600, -1.0%), Missouri (-1,500, -1.0%), and Ohio (-1,400, -0.5%). Wyoming lost the highest percentage for the month (-3.4%, -800 jobs), followed by North Dakota (-2.0%, -600), New Jersey, Missouri, and Oklahoma (-0.9%, -800). Colorado added the most construction jobs for the month (3,800 jobs or 2.1%), followed by Oregon (2,900, 2.6%), Illinois (2,900, 1.2%), Texas (2,800, 0.3%), and Georgia (2,100, 0.9%). The largest percentage gain occurred in Oregon, followed by Arkansas (2.2%, 1,400), Colorado, and West Virginia (1.6%, 600). California lost the most construction jobs during the past 12 months (-18,200 jobs, -2.0%), followed by Washington (-9,600, -4.3%), New Jersey (-8,000, -4.9%), New York (-6,300, -1.6%), and Maryland (-4,100, -2.5%). The largest percentage loss was in New Jersey, followed by Washington, Arkansas (-2.7%, -1,800), Wyoming (-2.5%, -600), Vermont (-2.5%, -400) and Maryland. Texas added the most construction (27,000 jobs or 3.2%), followed by Ohio (13,600, 5.5%), Michigan (10,100, 5.1%), Virginia (10,100, 4.6%), and North Carolina (10,000, 3.7%). New Mexico had the largest percentage gain over 12 months (14.3%, 7,700), followed by West Virginia (12.3%, 4,100), Idaho (8.5%, 6,100), Alaska (7.7%, 1,400) and Kentucky (6.4%, 6,000).
Additional uncertainty and complexity regarding tariffs that affect construction inputs surfaced this week. The Federal Register on Tuesday posted a list of 407 items containing steel or aluminum that are subject to a 50% tariff as of August 15, even if they were on a ship that was on the water or in a U.S. port but hadn’t been unloaded into a bonded warehouse. Previously, shipments in transit had a grace period. A reader shared a notice received Monday from TK Elevator Manufacturing warning that “we need to account for each individual project’s tariff amount. A change order reflecting the associated cost from the factory will be sent for your review once the factory notifies our local team of the final amount for each project.” Readers are invited to consult AGC’s Tariff Resource Center for the latest details and to send information about project timing, materials price changes, and supply chains to ken.simonson@agc.org.
The value of construction starts, not seasonally adjusted, inched up 0.1% year-over-year (y/y) in July and rose 3.7% year-to-date (YTD) in the first seven months of 2025 compared to January-July 2024, ConstructConnect reported on Wednesday. Nonresidential building starts climbed 22% y/y and 15% YTD, with commercial up 17% YTD, institutional down 5.3%, and industrial (manufacturing) up 66%. Engineering (civil) starts fell 8.5% y/y but rose 4.5% YTD, with roads up 0.8% YTD, water and sewage treatment up 6.0%, bridges up 16.5%, airport up 35%, and power infrastructure down 42%. Residential starts slumped 24% y/y and 11% YTD, with single-family down 12% YTD and multifamily down 8%.
The Architecture Billings Index (ABI) dipped to 46.2 in July, seasonally adjusted, from 46.8 in June, the American Institute of Architects posted on Wednesday. The index is “a leading economic indicator of construction activity, providing an approximately 9- to 12-month glimpse into the future of nonresidential construction spending activity.” The ABI is derived from the share of responding architecture firms that report a gain in billings compared to the previous month less the share reporting a decline in billings, presented on a 0-to-100 scale. Any score below 50.0 indicates decreasing business conditions. Billings have declined for nine months in a row and in all but three of the last 34 months. An index of design contract activity registered 47.9, the 17th consecutive monthly reading below 50.
Housing starts (units) in July rose 5.2% for the month at a seasonally adjusted annual rate and 1.6% for the first seven months of 2025 YTD compared to January-July 2024, the Census Bureau reported on Tuesday. Single-family starts rose 2.8% for the month but remained 4.2% lower YTD. Multifamily (five or more units) starts climbed 12% from June and 18% YTD. Residential permits fell 2.8% for the month and 3.5% YTD. Single-family permits edged up 0.5% from June but fell 5.8% YTD. Multifamily permits slumped 9.9% from June but rose 1.4% YTD.
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