Construction employment increased in 37 states in January from a year earlier, while 33 states added construction jobs between December and January, according to a new analysis of federal employment data released by the Associated General Contractors of America today. Association officials noted that demand for construction remains strong in many parts of the country, but cautioned that labor shortages are restraining employment gains in the sector.

“This report confirms that construction demand remains robust in most states, especially for data centers, manufacturing, and power projects,” said Ken Simonson, the association’s chief economist. “But contractors are scrambling to find qualified workers, which is keeping more states from posting employment increases.”