Denver metro leads nation in construction job losses. Here's why.

Colorado's construction jobs , particularly in Denver, have been among the nation's hardest hit for months, despite the number of cranes across the city, new data shows.

Why it matters: When firms struggle to find workers, vital infrastructure and economic development projects can stall.

By the numbers: The Denver-Aurora-Lakewood area had the second-largest decline in construction employment among 358 metros last month, according to the Associated General Contractors of America's (AGC) new analysis of Bureau of Labor Statistics data.

• Construction employment in metro Denver dropped 4.1% from July 2023 to July 2024, with about 4,700 jobs lost.
• Statewide, Colorado's construction jobs dropped 2.3% over the last year — the fourth-steepest decline in the U.S. and one of only 14 states and the District of Columbia that saw drops year-over-year.

Context: Like most of the nation, Colorado's construction employment plunged at the start of the pandemic but rebounded in 2021 and 2022 amid a surge in apartment projects, AGC chief economist Ken Simonson tells us.

The latest: Apartment construction has since slowed, however, Census Bureau data shows . That's because many of these buildings were completed in 2023 and earlier this year — just as population growth flattened and vacancies rose.

• Additionally, high interest rates and tighter lending standards have made it tough for developers to secure financing for new apartments and reduced demand for office and warehouse buildings, Simonson says.

The intrigue: Although Denver's airport and Colorado's highway construction projects have continued, they may have already passed their peak employment, contributing to the recent decline, Simonson adds.

What they're saying: Industry experts note numerous factors can hinder new developments, including higher costs of labor and building materials — but because those dynamics are unfolding nationwide, it doesn't explain why Colorado is lagging.

• "It's sort of a puzzle," Brian Lewandowski, an economist at CU Boulder's Leeds School of Business, told CPR . "It's not cut and dry."

The big picture: Construction employment rose year-over-year from July 2023 to July 2024 in 39 states, AGC's analysis shows.

• Alaska had the largest percentage increase (19.9%, 3,400 jobs), followed by Hawaii (13.2%, 5,000), Nevada (11.9%, 13,300), Louisiana (7.5%, 9,600) and Michigan (7.4%, 14,100).
• Maine had the largest percentage loss (-4.1%, -1,400 jobs), followed by D.C. (-4%, -600), Maryland (-2.5%, -4,000) and New York (-2.1%, -8,100).