The national non-seasonally adjusted construction unemployment rate reached 4.7% in June, up 1.3 percentage points from June 2025, according to an analysis of U.S. Bureau of Labor Statistics data released by the Associated Builders and Contractors (ABC). Every state reported a construction unemployment rate below 10%, while all but Connecticut, New Jersey and Rhode Island were below 7%.
National non-seasonally adjusted construction payroll employment increased by 59,000 jobs compared to June 2025, marking the 14th consecutive month of year-over-year gains below 100,000 jobs. Seasonally adjusted construction employment reached 8.3 million workers, remaining above its pre-pandemic peak.
According to the analysis, construction unemployment rates were lower than pre-pandemic levels in 34 states. Compared with June 2019, 17 states posted lower unemployment rates, while 32 states saw higher rates. Louisiana's rate was unchanged.
Bernard Markstein, president and chief economist at Markstein Advisors, said higher energy prices, labor costs, insurance premiums, skilled labor shortages, elevated interest rates and tariffs on construction materials continue to create challenges for contractors by increasing project costs and discouraging new construction activity.
Month over month, the national construction unemployment rate increased 0.6 percentage points from May. Eleven states posted lower unemployment rates, 38 saw increases and Oklahoma was unchanged.
The states with the lowest construction unemployment rates in June were:
- Alaska: 1.4%
- Wyoming: 1.6%
- New Hampshire: 1.9%
- Oklahoma: 2.4%
- Colorado and Indiana: 2.5%
The states with the highest construction unemployment rates were:
- Illinois and Minnesota: 6.8%
- New Mexico: 6.9%
- Rhode Island: 8.5%
- New Jersey: 8.9%
- Connecticut: 9.9%
