Most States See Lower Construction Unemployment in December, ABC Analysis Shows

WASHINGTON, DC — The national December 2025 not seasonally adjusted construction unemployment rate fell to 5.0%, a 0.2% decrease compared to December 2024, according to a state-by-state analysis of US Bureau of Labor Statistics data released by Associated Builders and Contractors.

The analysis found that 30 states—representing 60% of the country—reported lower estimated construction unemployment rates than a year earlier. Seventeen states posted higher rates, while three states—New Hampshire, Pennsylvania and Texas—were unchanged. All but five states recorded construction unemployment rates below 8%.

Due to the 2025 government shutdown, no October labor data were collected, and those figures are not available.

Construction Employment Growth Slows

National not seasonally adjusted payroll construction employment was 12,000 higher than in December 2024, marking the smallest year-over-year increase since March 2021, when employment declined during the pandemic.

Seasonally adjusted payroll construction employment totaled 8.3 million jobs in December, or 9.1% above the pre-pandemic peak of 7.6 million.

Most States Below Pre-Pandemic Unemployment Levels

Estimated construction unemployment rates were lower than pre-pandemic levels in 60% of states. As of December 2025, 30 states reported lower construction unemployment rates compared to December 2019, while 18 states were higher and two states—Georgia and New Mexico—matched their pre-pandemic rates.

“The construction industry continues to contend with weaker demand from the headwinds of tariffs and supply disruptions pushing building materials prices up, increasing insurance costs and an uptick in immigration enforcement contributing to a shortage of skilled construction workers, which has added to pressure to raise wages and salaries,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “On the positive side, a somewhat easier policy stance by the Federal Reserve has resulted in lower interest rates. Further declines in interest rates are likely this year. Adoption of software and equipment powered by artificial intelligence may help some companies to control costs and reap greater efficiency from their existing workforce.”

December Month-to-Month Changes

In December, the national not seasonally adjusted construction unemployment rate increased 0.9% from November.

Only three states—Alabama, Montana and New Mexico—posted lower rates over the month. Forty-four states reported higher rates, while Alaska, Georgia and Mississippi were unchanged.

States With the Lowest Construction Unemployment

The six states with the lowest estimated December not seasonally adjusted construction unemployment rates were:

• Hawaii: 2.0%

• Oklahoma: 2.5%

• Colorado: 2.7%

• Georgia: 2.8%

• Indiana: 2.8%

• Mississippi: 2.8%

Hawaii and Indiana each recorded their lowest December construction unemployment rates on record. Hawaii’s rate reflects combined construction, mining and logging employment. Colorado posted its second-lowest December rate, behind its 1.8% rate in December 2021. Georgia and Oklahoma each achieved their third-lowest December construction unemployment rates on record.

States With the Highest Construction Unemployment

The five states with the highest estimated December not seasonally adjusted construction unemployment rates were:

• Illinois: 9.4%

• New Jersey: 10.1%

• Connecticut: 10.5%

• Rhode Island: 11.2%

• Minnesota: 13.4%

Rhode Island recorded its lowest December construction unemployment rate since December 2022, when it stood at 8.9%.

To learn more, visit www.abc.org/News-Media/News-Releases/background-on-state-construction-unemployment-rates.