California Among Top 10 States Losing the Most Construction Jobs – What This Means for Workers and Leaders
The construction industry has long been one of the economic engines of California. From infrastructure projects and housing developments to renewable energy installations, construction touches nearly every aspect of the state’s growth and resilience. Yet, new research highlights a troubling trend: California is now among the top 10 states losing the most construction jobs.
A recent study conducted by Techr, an online HR platform, using U.S. Bureau of Labor Statistics data, found that California experienced the tenth-largest decline in construction sector employment between May 2024 and May 2025. Over those 12 months, the state lost 13,800 construction jobs, a 1.51% drop, as employment decreased from 912,700 to 898,900.
Why This Matters Beyond the Numbers
On the surface, a 1.5% decline might seem modest. But when you translate those figures into livelihoods, families, and communities, the impact is significant. Each job loss represents not just a paycheck, but also stability, healthcare access, housing security, and the ability to support local businesses.
Techr’s analysis points to several factors fueling this decline:
Reduced infrastructure investment – Delays or downsizing of large-scale projects.
Rising construction costs – Materials, labor, and permitting hurdles making projects less viable.
Permit and regulatory delays – Slowing down development timelines.
These issues ripple outward. Fewer construction projects can mean delays in housing availability, slowing down California’s ability to tackle its ongoing housing crisis. Local economies that rely on trade professionals—electricians, plumbers, carpenters—also feel the sting.
Implications for Workforce and Leadership
As someone who works with organizations on burnout prevention, workplace culture, and retention (see BreakfastLeadership.com/blog), I see parallels here with other industries. When industries contract, uncertainty rises. Workers begin to fear job security, which can lead to increased stress, anxiety, and eventually burnout.
Leaders in construction and related industries need to take this moment seriously. Supporting employees through reskilling initiatives, offering mental health resources, and proactively communicating about future project pipelines are crucial steps. A workforce that feels left in the dark is a workforce at risk of disengagement.
Policy and Community Opportunities
For policymakers, these findings should serve as a wake-up call. Investing in infrastructure is not just about bridges and roads, it is about sustaining the workforce that builds them. Streamlining permit processes, supporting affordable housing projects, and incentivizing green construction could help reverse this decline.
Community colleges, trade schools, and apprenticeship programs also play a vital role. By aligning training with future demands, such as renewable energy installations and smart infrastructure, California can prepare its workforce for where opportunities are headed, not just where they’ve been.
A Call to Adapt
California’s economy has always been dynamic, and downturns in one sector often lead to growth in another. But the human cost of transitions cannot be ignored. Workers and leaders alike must adopt a mindset of adaptability. For businesses, that means doubling down on retention and culture. For workers, it may mean embracing upskilling opportunities that align with future market needs.
As the Techr spokesperson noted: “Understanding where these job losses are happening is key for policymakers, industry leaders, and workers preparing for future demand shifts.”
The data makes one thing clear: leadership, resilience, and proactive action are no longer optional—they are strategic imperatives.
Sources:
U.S. Bureau of Labor Statistics
Study by elearningindustry.com/hr-directory
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