Construction unemployment rate decreases slightly in December 2025

The national December 2025 not seasonally adjusted (NSA) construction unemployment rate was reported at 5 percent, a 0.2 percent decrease from December 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data by Associated Builders and Contractors (ABC).

The Washington-based association found that 30 states had lower estimated construction unemployment rates over the same period, 17 had higher rates and three states (New Hampshire, Pennsylvania and Texas) had the same rate. All but five states had construction unemployment rates below 8 percent.

“The construction industry continues to contend with weaker demand from the headwinds of tariffs and supply disruptions pushing building materials prices up, increasing insurance costs and an uptick in immigration enforcement contributing to a shortage of skilled construction workers, which has added to pressure to raise wages and salaries,” says Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.

Note that, because of the 2025 government shutdown, no October labor statistics from October were collected and was not available in the analysis.

National NSA payroll construction employment was 12,000 higher than December 2024, its smallest year-over-year increase since March 2021 when it fell during the pandemic. Seasonally adjusted payroll construction employment was 8.3 million, or 9.1 percent above its pre-pandemic peak of 7.6 million.

Estimated state construction unemployment rates were lower than their pre-pandemic level in 60 percent of states. As of December 2025, 30 states had lower construction unemployment rates compared to December 2019, while 18 states had higher rates and the remaining two (Georgia and New Mexico) had the same rate.

“On the positive side, a somewhat easier policy stance by the Federal Reserve has resulted in lower interest rates,” Markstein says. “Further declines in interest rates are likely this year. Adoption of software and equipment powered by artificial intelligence may help some companies to control costs and reap greater efficiency from their existing workforce.”

In December, the national NSA construction unemployment rate climbed 0.9 percent from November. Three states (Alabama, Montana and New Mexico) had lower rates, 44 posted higher rates and three states (Alaska, Georgia and Mississippi) had the same estimated construction unemployment rates as in November.

The six states with the lowest estimated NSA construction unemployment rates for December were Hawaii (2 percent), Oklahoma (2.5 percent), Colorado (2.7 percent) and a three-way tie at 2.8 percent between Georgia, Indiana and Mississippi.

Both Hawaii and Indiana had their lowest December NSA estimated construction unemployment rate on record. Note that Hawaii’s unemployment rate is for construction plus mining and logging. Colorado posted its second-lowest December rate on record behind the 1.8 percent rate the state achieved in December 2021. Georgia and Oklahoma each had their third-lowest December construction unemployment rate on record.

Five states with the highest September estimated NSA construction unemployment rates were Illinois (9.4 percent), New Jersey (10.1 percent), Connecticut (10.5 percent), Rhode Island (11.2 percent) and Minnesota (13.4 percent).

Rhode Island recorded its lowest December rate since its December 2022 rate of 8.9 percent.