Construction Jobs Dip in December as Nonresidential Sectors Lose Ground

WASHINGTON, DC — Building employment declined modestly in December, shedding 11,000 jobs on internet, in keeping with an Related Builders and Contractors evaluation of newly launched knowledge from the US Bureau of Labor Statistics. Regardless of the month-to-month pullback, business employment stays barely greater than a yr in the past, up 14,000 jobs, or 0.2%.

Nonresidential building accounted for a lot of the losses, with employment down 7,800 positions. Heavy and civil engineering was the lone vivid spot, including 2,300 jobs, whereas nonresidential specialty commerce contractors and nonresidential constructing building shed 8,900 and 1,200 jobs, respectively.

The development unemployment charge held at 5.0% in December. Throughout all industries, unemployment declined to 4.4%, although it stays 0.3 share factors greater than this time final yr.

Robust Begin to the Yr

“The development business added simply 14,000 internet new jobs in 2025,” stated ABC Chief Economist Anirban Basu. “Excluding the primary yr of the COVID-19 pandemic, that’s the worst 12-month efficiency since 2011, when the development business was nonetheless spiraling from the Nice Recession. Whereas the nonresidential aspect of the business carried out considerably higher over the previous yr, even that phase’s momentum has began to wane. Nonresidential specialty commerce contractors, demand for which led the business in 2025, posted its worst month in practically 4 years, dropping 8,900 jobs in December.

“Regardless of this dismal efficiency, the business’s unemployment charge stays comparatively low, down 0.2 share factors from the identical time final yr,” stated Basu. “This uncommon dynamic—lowering employment however a gentle unemployment charge—probably displays the consequences of immigration coverage on the business’s workforce. Consequently, common hourly earnings for manufacturing and nonsupervisory building employees had been up 4.5% on a year-over-year foundation in each November and December, a pointy improve from the three.9% improve noticed in October.

‘Whereas contractors stay optimistic about hiring over the following six months, in keeping with ABC’s Construction Confidence Index, latest declines in backlog, ongoing declines in building spending and December’s job losses recommend it could possibly be a troublesome begin to 2026 for the business.”