Construction’s December Job Declines of 11K Workers Portend Slow Start to 2026

Development employment declined by an estimated 11,000 employees in December, leading to an annual acquire of simply 15,000 employees for 2025, in accordance with the Bureau of Labor Statistics’ monthly jobs report.

Heavy and civil engineering contractors comprised the lone sector including jobs in December, with a month-to-month acquire of two,300 positions.

In the meantime, specialty commerce contractors registered a decline of seven,800 positions total. That quantity was comprised of a decline of 8,900 jobs amongst nonresidential specialty commerce companies, and a acquire of 1,100 positions amongst residential specialty commerce companies.

Constructing contractors shed an estimated 5,400 positions total, with companies targeted primarily in residential development shedding 4,200 jobs, and nonresidential builders eliminating 1,200 positions.

The general annual acquire of simply 15,000 employees was traditionally notable, with Related Builders and Contractors Chief Economist Anirban Basu commenting in a press release, “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.”

Basu additionally famous particular concern over December job losses in each the nonresidential constructing and nonresidential specialty commerce classes, remarking, “Whereas the nonresidential aspect of the business carried out considerably higher over the previous yr, even that section’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.”

Ken Simonson, chief economist for Related Normal Contractors of America, additionally famous the nonresidential sector’s late-2025 jobs decline, citing financial coverage shifts in the course of the previous yr.

“Nonresidential development employment expanded modestly in 2025 however was held again by unwillingness of many homeowners to decide to initiatives within the gentle of ongoing coverage turmoil,” Simonson stated in a press release. “Based mostly on our current survey, it seems 2026 may even current solely restricted alternatives for progress.”

ABC’s Basu echoed these remarks, stating, “Latest declines in backlog, ongoing declines in development spending and December’s job losses recommend it could possibly be a tough begin to 2026 for the business.”

Nonetheless, Jeffrey D. Shoaf, AGC of America’s chief government officer, commented that, “Regardless that they’re much less smitten by demand for most sorts of development work this yr, most companies count on to have sufficient work to increase their headcount. This assumes they are going to be capable to discover sufficient certified employees to rent amid continual federal underinvestment in development workforce improvement.”