Construction unemployment remained relatively low across most of the country in March despite mounting economic pressures, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. All but six states reported construction unemployment rates below 10%, while national construction employment continued to grow year over year.
The national not seasonally adjusted construction unemployment rate was 6.7% in March, up 1.3% from the same month in 2025. Construction payroll employment also increased by 58,000 jobs compared to a year earlier, though hiring growth has continued to slow.
States with the lowest construction unemployment rates included Oklahoma, South Dakota and Tennessee, while Rhode Island, Connecticut and Minnesota posted the highest rates.
ABC noted that rising energy prices, elevated interest rates, labor shortages and higher insurance and material costs are creating new pressure on contractors and developers. Those conditions are causing some projects to be delayed, scaled back or canceled, contributing to slower demand for construction workers in parts of the country.
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