Construction Employment Rebounds in September

The construction industry added a net 19,000 jobs in September, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. Industry employment is up 38,000 positions compared with September 2024, a 0.5% increase.

Nonresidential construction drove most of the monthly gains, adding 16,300 jobs across all major subsectors. Nonresidential specialty trade contractors accounted for the largest share with 11,100 new positions. Heavy and civil engineering added 4,900 jobs, while nonresidential building employment increased modestly by 300.

The construction unemployment rate rose to 3.8% in September. National unemployment edged up to 4.4%.

“Construction employment increased in September, ending a streak of three consecutive monthly declines,” said ABC Chief Economist Anirban Basu. He noted that despite the rebound, the industry has added only 2,000 net jobs since March, with recent spending data signaling potential softening in nonresidential activity.

Basu said stable unemployment alongside limited hiring points to weak labor force growth. However, wage gains in September suggest labor shortages are easing and no longer driving strong cost pressures.

Contractors remain cautiously optimistic. Nearly half of ABC members expect to increase staffing over the next six months, while fewer than 12% anticipate reductions, according to ABC’s Construction Confidence Index.

Due to the federal government shutdown, the BLS will not release October employment data. The next update on construction labor conditions is scheduled for Dec. 16 with the November report.