Construction employment added 13,000 jobs on net in March, according to Associated Builders and Contractors. On a year-over-year basis, the industry has expanded by 143,000 jobs—an increase of 1.8%.
The construction unemployment rate fell from 7.2% in February to 5.4% in March. The national unemployment rate for all industries rose from 4.1% in February to 4.2% in March as the U.S. economy added 228,000 jobs.
Nonresidential construction added 22,300 jobs in March, with growth in two of the three subsectors. Nonresidential specialty trade contractors added 19,300 jobs; heavy and civil engineering added 3,400 jobs; and nonresidential building lost 400 jobs.
“At first glance, this is a perfectly fine jobs report for the construction industry,” said ABC Chief Economist Anirban Basu. “The details, however, give cause for concern. With downward revisions to the January and February numbers, the industry added just 8,000 jobs per month during the first quarter of 2025. Construction employment is up just 1.8% since March 2024, the slowest year-over-year growth in four years.
“March’s labor market data is a lesser concern in light of the sweeping tariffs announced on April 2,” Basu continued. “What amounts to the largest tax hike since 1968 will reduce construction activity due to rising input costs, shaken business confidence and potentially higher-for-longer interest rates. While contractors were sanguine about the outlook as of last month, according to ABC’s Construction Confidence Index, industry expectations are likely to worsen in the coming months.”
