Construction Unemployment Holds Below 4% Nationwide as Hiring Gains Continue to Slow

Employment Ranges Stay Elevated, however Hiring Momentum Is Slowing

Nationwide not seasonally adjusted payroll building employment elevated by 33,000 jobs in comparison with September 2024. On a seasonally adjusted foundation, building employment reached 8.3 million, marking a degree 9.1% above the trade’s pre-pandemic peak of seven.6 million.

Regardless of these features, year-over-year employment development is decelerating. September marked the third consecutive month wherein annual job development got here in beneath 100,000, following greater than 4 years of six-digit will increase.

States With the Lowest Development Unemployment

The six states with the bottom estimated not seasonally adjusted building unemployment charges in September had been:

• Oklahoma: 1.4%

• Hawaii: 1.7%

• New Hampshire: 2.0%

• Georgia: 2.2%

• Indiana: 2.2%

• Tennessee: 2.2%

Oklahoma, Hawaii and Indiana every posted their lowest September building unemployment charges on document. Hawaii additionally recorded one of many largest year-over-year declines, down 1.2 share factors, together with Illinois, Kentucky and Louisiana. Tennessee posted its second-lowest September charge on document, trailing solely the two.1% ranges seen in 2021 and 2022.

Observe: Hawaii’s charge consists of building plus mining and logging.

States With the Highest Development Unemployment

The 5 states with the very best estimated building unemployment charges in September had been:

• Minnesota: 5.9%

• Montana: 5.9%

• Connecticut: 6.7%

• Rhode Island: 7.5%

• New Jersey: 9.4%

Rhode Island recorded its lowest September charge since 2021.

Comparability to Pre-Pandemic Labor Situations

Development unemployment charges had been decrease than pre-pandemic ranges in simply over 40% of states. As of September 2025, 21 states reported decrease building unemployment in comparison with September 2019, whereas 27 states had been increased and two—Arkansas and Washington—had been unchanged.

“Larger constructing supplies prices as a result of tariffs, increased insurance coverage prices and rising labor prices together with a scarcity of expert building employees are weighing upon the development trade,” mentioned Bernard Markstein, President and Chief Economist of Markstein Advisors, who performed the evaluation for ABC. “On the optimistic facet, a considerably simpler coverage stance by the Federal Reserve has resulted in decrease rates of interest. Additional declines in rates of interest are possible in 2026.”

Month-to-Month Adjustments Sign Seasonal Stress

From August to September, the nationwide not seasonally adjusted building unemployment charge rose by 0.6 share factors. Solely Iowa and Utah recorded decrease charges month over month, whereas 46 states posted will increase. Hawaii and Ohio reported no change.

To higher perceive the premise for calculating unemployment charges and what they measure, try the Background on State Construction Unemployment Rates at www.abc.org/News-Media/News-Releases.