Construction Job Market Rebounds in March Amid Economic Challenges
Key Highlights
- Construction employment rose by 26,000 jobs in March 2026, marking a positive monthly increase
- Nonresidential construction added 12,200 jobs, with significant gains in building, specialty trades, and civil engineering
- Industry employment has grown by 57,000 jobs year-over-year, a 0.7% increase, indicating steady industry expansion
WASHINGTON, DC —The construction job market showed improvement in March, adding 26,000 according to data released April 3rd by the US Bureau of Labor Statistics. Industry employment has grown by 57,000 jobs year-over-year, an increase of 0.7%.
The construction unemployment rate was 6.7% in March. Unemployment across all industries dropped to 4.3%, but is still 0.1 percentage points higher than one year ago.
Nonresidential construction employment increased by 12,200 positions, with gains in all three subcategories. Nonresidential building added the most jobs, increasing by 4,500 positions. Nonresidential specialty trade and heavy and civil engineering added 3,900 and 3,800 jobs, respectively, in March.
“Construction employment rebounded in March as both the residential and nonresidential segments added jobs for the month,” said ABC Chief Economist Anirban Basu. “Industrywide employment has expanded by an average of 19,300 jobs per month in 2026. That’s a marked improvement from 2025, when construction employment actually declined, but there remains cause for concern about the industry’s outlook.
“The March jobs data do not capture the detrimental ways in which the conflict in Iran will continue to affect the construction industry,” said Basu. “Oil prices have risen to heights not seen since 2022 and diesel prices have soared to $5.40 per gallon, up more than $1.90 per gallon from the start of 2026. At the same time, higher treasury yields have put renewed pressure on borrowing costs. While contractors were relatively optimistic about the near-term outlook as of February, according to ABC’s Construction Confidence Index, it remains to be seen how long that optimism can persist under current economic conditions.”
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.