The national June not seasonally adjusted construction unemployment rate was 4.7%, a 1.3% increase from June 2025, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors. The analysis found that every state had a construction unemployment rate below 10% and all but three states (Connecticut, New Jersey and Rhode Island) had a rate below 7%.
National NSA payroll construction employment was 59,000 higher than in June 2025, its 14th straight month of year-over-year increases below 100,000. Seasonally adjusted payroll construction employment was 8.3 million, or 9.5% above its pre-pandemic peak of 7.6 million.
Estimated state construction unemployment rates were lower than their pre-pandemic (February 2020) level in 34 states. As of June 2026, 17 states had lower construction unemployment rates compared to June 2019, 32 states had higher rates and one (Louisiana) had the same rate.
“The on-again, off-again active hostilities against Iran have injected more than the usual volatility in energy prices. Overall, energy prices are significantly higher than a year ago, which is having a negative impact on the construction industry. Moreover, increased insurance premiums, rising labor costs, shortages of skilled labor and elevated interest rates all continue to be impediments to construction activity,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Meanwhile, the imposition of tariffs—both in place and proposed—on building materials is creating an additional headache for the industry, further reducing willingness to undertake new construction projects and driving up the cost of many current projects.”
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