September jobs report shows a rebound in construction

Listen to this article

A September jobs report that added 19,000 jobs in the construction industry has restored some contractors’ optimism. However, the picture for future growth remains mixed according to experts.

Overall employers added 119,000 jobs in September, according to a report from the U.S. Bureau of Labor Statistics that was delayed by the seven-week federal government shutdown. Industry employment grew by 38,000 jobs, an increase of 0.5%, in the past 12 months, analyses from the construction industry’s largest associations showed.

“Construction employment increased in September, ending a streak of three consecutive monthly declines,” said Anirban Basu, the chief economist of the Associated Builders and Contractors, in a statement. “Despite the rebound, the industry has added just 2,000 jobs since March. While weakness is largely concentrated in the residential segment, with nonresidential employment growing at a modest pace over the past year, recent construction spending data suggests that activity in the nonresidential segment is beginning to contract as well.”

Nonresidential construction employment added 16,300 positions, the report showed. Nonresidential specialty trade contractors added 11,000 jobs and heavy and civil engineering construction firms added 4,900 jobs. Nonresidential building construction added 300 jobs.

Overall unemployment increased to 4.4%, up from 4.3% in August, the report showed. The construction unemployment rate rose to 3.8% in September.

“Even with the industry’s paltry job growth in 2025, the construction unemployment rate remained relatively low in September at 3.8%,” Basu said. “While that dynamic – tepid hiring but stable employment – indicates a lack of labor force growth, construction wages grew at a healthy pace for the month, suggesting that labor shortages are no longer putting significant upward pressure on labor costs.”

Half of ABC members indicated they expected their staff to grow over the next six months and fewer than 12% expected to contract, according to the association’s confidence index. It’s likely the next labor market assessment for October and November will be published in December because of the government shutdown.

Hourly earnings for nonsupervisory construction employees increased 4% over the year to $37.64, an Associated General Contractors analysis showed.

AGC said its analysis showed firms were optimistic demand will stay strong, despite uncertainty during the government shutdown and questions about future tariff rates.

“Despite some significant economic uncertainties, construction firms remain optimistic enough to continue adding to their payrolls,” said Jeffrey D. Shoaff, the chief executive officer at AGC, in a statement. “The best way to sustain that momentum is by providing clarity about tariff levels, stabilizing materials prices and developing a more robust workforce.”