WASHINGTON, DC — Construction unemployment remained historically low across the country in June, with every state posting a rate below 10% and all but three states reporting construction unemployment below 7%, according to a new state-by-state analysis from Associated Builders and Contractors (ABC).

The national non-seasonally adjusted (NSA) construction unemployment rate was 4.7% in June, up 1.3 percentage points from June 2025. Meanwhile, national payroll construction employment increased by 59,000 jobs year over year, marking the 14th consecutive month in which annual employment gains remained below 100,000.

Seasonally adjusted construction employment reached 8.3 million workers, approximately 9.5% above the industry's pre-pandemic peak.

Most States Continue to See Tight Labor Markets

ABC's analysis found that estimated construction unemployment rates remain below pre-pandemic levels in 34 states. Compared to June 2019, construction unemployment was lower in 17 states, higher in 32 states and unchanged in Louisiana.

Although labor availability remains relatively strong, contractors continue to face significant economic headwinds affecting new project activity and project costs.

“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,” Bernard Markstein, President and Chief Economist of Markstein Advisors, who conducted the analysis for ABC said. “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.”

Monthly Changes Vary by State

From May to June, the national construction unemployment rate increased by 0.6 percentage points.

On a state-by-state basis, unemployment rates declined in 11 states, increased in 38 states and remained unchanged in Oklahoma.

ABC noted that Alaska recorded its lowest June construction unemployment rate on record at 1.4%. Wyoming posted the largest year-over-year improvement, while New Mexico experienced the largest month-to-month decline.

Alaska, Wyoming Lead Lowest Unemployment Rankings

The six states with the lowest estimated NSA construction unemployment rates in June were:

• Alaska — 1.4%
• Wyoming — 1.6%
• New Hampshire — 1.9%
• Oklahoma — 2.4%
• Colorado — 2.5% (tie)
• Indiana — 2.5% (tie)

At the opposite end of the rankings, the highest construction unemployment rates were reported in:

• Illinois — 6.8% (tie)
• Minnesota — 6.8% (tie)
• New Mexico — 6.9%
• Rhode Island — 8.5%
• New Jersey — 8.9%
• Connecticut — 9.9%

Despite continued regional differences, the report indicates that construction labor markets remain considerably tighter than historical averages, even as contractors navigate rising operating costs and uncertainty surrounding future project demand.

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.