Construction Employment Ticks Up, but Labor Market Still Tight
Key Highlights
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ABC analysis shows 19,000 new construction jobs in September, led by nonresidential specialty trades
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Contractors report steady wages and expect staffing levels to increase over the next six months
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Industry won’t receive another labor market update until November data releases on Dec. 16 due to the federal shutdown
WASHINGTON, DC — The construction industry added 19,000 net new jobs in September, according to an Associated Builders and Contractors analysis of the latest US Bureau of Labor Statistics data. Year-over-year, construction employment is up by 38,000 positions—an increase of 0.5%—as contractors continue balancing steady demand with tight labor availability.
Nonresidential Hiring Gains Across All Categories
Nonresidential construction accounted for the bulk of September’s growth, adding 16,300 jobs overall. Specialty trade contractors led with 11,100 new positions, while heavy and civil engineering firms added 4,900 jobs. Nonresidential building employment edged up by 300 jobs.
Across the broader economy, unemployment rose from 4.3% in August to 4.4% in September. Construction followed the same trend, reaching 3.8% unemployment for the month.
“Construction employment increased in September, ending a streak of three consecutive monthly declines,” said ABC Chief Economist Anirban Basu. “Despite the rebound, the industry has added just 2,000 jobs since March. While weakness is largely concentrated in the residential segment, with nonresidential employment growing at a modest pace over the past year, recent construction spending data suggests that activity in the nonresidential segment is beginning to contract as well.
“Even with the industry’s paltry job growth in 2025, the construction unemployment rate remained relatively low in September at 3.8%,” said Basu. “While that dynamic—tepid hiring but stable unemployment—indicates a lack of labor force growth, construction wages grew at a healthy pace for the month, suggesting that labor shortages are no longer putting significant upward pressure on labor costs.
“Contractors remain confident that hiring will pick back up over the next six months,” said Basu. “Nearly half of ABC members expect their staffing levels to increase over the next six months, while fewer than 12% expect them to contract, according to ABC’s Construction Confidence Index. Because the BLS will not publish October employment data due to the government shutdown, the industry won’t have another assessment of its labor market health until the November data are published on Dec. 16.”
Contractors Watching Conditions but Expecting Improved Hiring
Taken together, September’s numbers point to an industry that’s absorbing shifting market conditions while keeping crews busy in core nonresidential segments. Specialty trades continue to show the strongest demand, and rising wages underscore ongoing competition for skilled labor—even as spending indicators suggest broader caution ahead.
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 release was rewritten with help from generative AI.