Construction employment across the United States remains a landscape of sharp contrasts, according to the latest report from the Associated General Contractors of America (AGCA). While national growth is being bolstered by a surge in high-tech infrastructure, localized markets—particularly on Long Island—are struggling to break free from prolonged stagnation.
Data from September 2025 to September 2026 shows that Nassau and Suffolk counties added a mere 100 construction jobs, a 0.1% increase that barely moves the needle. This marginal uptick serves as a fragile reversal of a downward trend that saw the region suffer from declining job numbers in 14 of the previous 17 months. Meanwhile, New York City experienced a slightly healthier trajectory, growing its construction workforce by 2%, or 3,300 jobs, during the same period.
## The Data Center Effect: Tech’s Growing Footprint
The diverging fortunes of these metro areas are increasingly tied to the type of development occurring within their borders. According to Ken Simonson, chief economist at the AGCA, national construction gains are no longer broad-based. Instead, the industry is seeing a clear correlation between job growth and the rise of data centers, massive power projects, and specialized manufacturing plants.
As artificial intelligence and cloud computing demand continue to accelerate, tech companies and infrastructure firms are pouring capital into specialized facilities. These projects often require massive, specialized labor forces, insulating them from the volatility seen in traditional commercial or residential construction. In contrast, standard project types have been stifled by a “perfect storm” of rising material costs and broader economic or political uncertainty.
## Tech-Driven Infrastructure vs. Stalled Conventional Projects
The industry’s reliance on tech-centric construction is becoming a defining feature of the modern labor market. As the AI boom fuels a race to build localized computing infrastructure, cities positioned to accommodate data centers are seeing their construction sectors thrive, while others lag behind.
Nationally, the trend is uneven: 180 metro areas reported job growth, while 118 saw declines and 62 remained flat. Regions like Houston, Baton Rouge, and St. Louis have seen robust growth, largely fueled by large-scale industrial and energy-related investments. Conversely, areas such as the Atlanta, Oakland, and the Jersey City-White Plains corridor have faced significant job losses as commercial developers hit the brakes.
Experts suggest that the current market is essentially bifurcated. While the high-tech infrastructure sector is booming, the rest of the industry is effectively waiting for federal intervention. Rising interest rates and the high cost of raw materials have created a climate where developers prefer to hit “pause” rather than break ground on conventional residential or retail projects.
## Calling for Federal Action
In response to these findings, the AGCA is calling on federal leaders to take immediate action to stabilize the industry. Jeffrey Shoaf, CEO of the association, emphasized that the current reliance on data centers as a sole economic engine is not sustainable for the wider workforce.
“The only kind of projects that appear immune to uncertainties about future federal infrastructure investments and rising prices are data centers,” Shoaf noted in a recent statement. He urged federal officials to address the underlying causes of price volatility and policy ambiguity, arguing that strategic government intervention could broaden the demand for labor across the country.
For regions like Long Island, where growth has been stifled, the path forward likely depends on whether the construction industry can diversify its pipeline beyond the current tech-centric surge, or if federal policies can finally lower the barriers to entry for more traditional, shovel-ready projects.
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