U.S. construction and nonfarm employment shows mixed August results

U.S. state labor markets showed varied results in August, with significant activity in the construction sector and nonfarm payrolls. According to data from the Associated General Contractors of America, construction employment increased in 35 states and the District of Columbia between August 2025 and August 2026. Ohio, North Carolina, and Texas led in total job additions, while Louisiana saw the largest percentage increase over the 12-month period.

However, industry officials warned that continued gains face threats from tariff policy volatility, delays in federal highway and transit funding, and growing opposition to data center developments. Some states, including California, New York, and Virginia, reported declines in construction employment over the year.

Broadly, nonfarm payroll employment increased in 35 states compared to July, while 15 states and D.C. recorded declines. Total U.S. nonfarm payroll employment rose by 162,000 jobs in August. While California led monthly gains, New York saw the largest decline. Over the 12 months ending in August, total nonfarm employment across the country increased by 603,000 jobs.