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. Employment in the industry increased by 38,000 jobs compared to September 2024, an increase of 0.5%.
Nonresidential construction led 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 jobs. Heavy and civil engineering added 4,900 jobs, while nonresidential building employment increased modestly by 300 jobs.
The unemployment rate in the construction sector rose to 3.8% in September. National unemployment rose to 4.4%.
“Employment rates in the construction sector rose in September, ending a streak of three consecutive monthly declines,” said Anirban Basu, chief economist at ABC Bank. Despite the recovery, the industry has added just 2,000 net jobs since March, he noted, with recent spending data pointing to a potential decline in non-residential activity.
Basu said stable unemployment coupled with limited hiring indicates weak labor force growth. However, wage gains in September suggest labor shortages have eased and are no longer causing strong cost pressures.
Contractors remain cautiously optimistic. Nearly half of ABC members expect headcount increases over the next six months, while less than 12% expect cuts, according to the ABC’s Construction Confidence Index.
Due to the federal government shutdown, the Bureau of Labor Statistics will not release employment data for October. The next update on business conditions in the construction sector is scheduled for December 16 with the November report.
