Construction employment added 17,000 jobs on net in May, according to Associated Builders and Contractors. On a year-over-year basis, the industry has expanded by 68,000 jobs—an increase of 0.8%.
The construction unemployment rate rose from 3.8% in April to 4.1% in May. The national unemployment rate for all industries was unchanged at 4.3% as the U.S. economy added 172,000 jobs.
Nonresidential construction added 15,700 jobs in May, with gains in all three subsectors. Nonresidential specialty trade contractors added 11,400 jobs; heavy and civil engineering added 2,600 jobs; and nonresidential building added 1,700 jobs.
“The construction industry posted healthy job gains in May, especially within the nonresidential segment,” said ABC Chief Economist Anirban Basu. “The industry’s recent job growth, driven by insatiable demand for data centers and ongoing growth in publicly funded construction activity, appears set to continue over the coming months. Contractors also remain broadly optimistic about growing their staffing levels over the next six months, according to ABC’s Construction Confidence Index.”
Basu said the “surprising strength of the broader labor market” is noteworthy.
“Economywide job growth has accelerated, rising to a pace not seen since the early months of 2024, and the unemployment rate held steady at a perfectly acceptable 4.3% in May,” Basu said. “This is an indication of broader economic resilience, albeit one that is not necessarily encouraging for the construction industry.
“The combination of a stable labor market and resurgent inflation suggests that rate hikes are now more likely than rate cuts over the next several quarters,” Basu continued, “and high borrowing costs and tight lending standards will continue to weigh on construction activity during the months ahead.”
