The national not seasonally adjusted (NSA) construction unemployment rate for June 2025 was 3.4%, according to an analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC). This marks a slight 0.1 percentage point increase from June 2024.
The state-by-state analysis found that:
- 18 states reported lower construction unemployment rates compared to June 2024
- 28 states had higher rates
- 4 states saw no change
- All states reported construction unemployment below 10%
On the job creation front, NSA payroll construction employment in June was 114,000 higher than the same month in 2024. Seasonally adjusted payroll construction employment reached 8.3 million, up 9.4% from the pre-pandemic peak of 7.6 million.
Compared to pre-pandemic levels in June 2019:
- 37 states had lower construction unemployment rates
- 12 states had higher rates
- 1 state (Kansas) remained unchanged
While employment figures remain relatively strong, ongoing economic uncertainties are contributing to cautious outlooks across the industry.
“Uneasiness that the economy might weaken over the remainder of this year and into 2026 is producing some hesitancy among builders and developers,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.
He also pointed to rising material prices influenced by tariffs, elevated interest rates, and labor costs as contributing factors to hiring slowdowns — despite firms’ reluctance to lay off workers.
Month-to-Month Changes
From May to June 2025, the national NSA construction unemployment rate dipped by 0.1 percentage point. Across the states:
- 29 saw decreases
- 19 saw increases
- 2 states (Arkansas and Kentucky) reported no change
States with the Lowest Construction Unemployment Rates in June:
- South Dakota: 0.8%
- North Dakota: 1.2%
- New Hampshire: 1.3%
- Montana and Oklahoma (tie): 1.5%
South Dakota, North Dakota, Montana, and Oklahoma each posted record-low June rates. South Dakota had the largest year-over-year improvement, dropping 1.7 percentage points.
States with the Highest Construction Unemployment Rates in June:
- Maryland: 4.6%
- New Mexico: 4.8%
- Connecticut: 5.2%
- New Jersey: 8.5%
- Rhode Island: 8.9%
Despite being among the highest, Rhode Island had the largest monthly improvement, dropping 1.9 percentage points.
