Construction Unemployment Low in June as Economists Remain Cautious

Overall construction unemployment reached 3.4% in June, up 0.1% year-over-year, according to data released by the U.S. Bureau of Labor Statistics.

On a state-by-state basis, 18 states had a lower unemployment rate than that recorded in June 2024, while 28 states had higher unemployment, and rates for four states held steady. All rates were calculated without seasonal adjustment.

Despite low unemployment rates, experts remain cautious in the face of the current economic uncertainty surrounding tariffs and other factors. “While June state construction unemployment rates continue to indicate a relatively healthy level of construction employment, uneasiness that the economy might weaken over the remainder of this year and into 2026 is producing some hesitancy among builders and developers about proceeding with new projects,” Bernard Markstein, president and chief economist of Markstein Advisors, said in a press release for Associated Builders and Contractors. “Although most builders are loath to lay off workers at present, they are more cautious in their hiring.”

On a monthly basis, the unemployment rate fell 0.1% in May, with 29 states seeing lower rates, two states seeing no change, and 19 with higher rates than the previous month. South Dakota had the lowest rate in June, at 0.8%, while North Dakota and New Hampshire were next on the list at 1.2% and 1.3%, respectively.

At the high end, Rhode Island had a rate of 8.9% and New Jersey’s unemployment reached 8.5%. By metro area, just 180 of the 360 recorded areas added jobs in the past year, with Arlington-Alexandria-Reston, Va.-W.Va.; and Cincinnati, Ohio-Ky.-Ind. seeing the largest increase year-over-year in June.

“Construction activity is in a holding pattern in much of the nation,” Ken Simonson, chief economist at Associate General Contractors of America, said in a statement. “As a result, fewer metro areas are experiencing gains in construction employment compared to a year ago.”

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