For the first time since 2021, fewer than half of the nation’s metro areas added construction jobs between August 2024 and August 2025, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials noted that many private-sector developers appear to be putting projects on hold amid rising prices caused by tariffs, workforce shortages and higher interest rates.
“Construction employment has stalled or retreated in more and more areas as owners pull back on projects in the face of higher costs,” said Ken Simonson, the association’s chief economist. “Workforce shortages, tariffs and higher interest rates are inflating construction costs and schedules to the point where many projects no longer appear to make sense to developers.”
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