Construction Employment Growth Slows Despite Low Unemployment Rates

Payroll construction employment increased by 33,000 jobs compared with September 2024. Seasonally adjusted construction employment reached 8.3 million, or 9.1% above its pre-pandemic peak of 7.6 million. However, year-over-year employment gains have slowed, marking the third consecutive month with growth below 100,000 after several years of larger increases.

Comparisons with pre-pandemic levels showed mixed results across states. As of September 2025, 21 states had lower construction unemployment rates than in September 2019, 27 states had higher rates, and Arkansas and Washington reported the same rate.

Among the states, Oklahoma posted the lowest estimated construction unemployment rate at 1.4%, followed by Hawaii at 1.7% and New Hampshire at 2%. Georgia, Indiana, and Tennessee were tied at 2.2%. New Jersey recorded the highest rate at 9.4%.

ABC noted that higher materials, insurance, and labor costs, combined with ongoing skilled labor shortages, continue to weigh on the construction industry, even as interest rates have eased following recent shifts in Federal Reserve policy.

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

Note: This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.