Construction Unemployment Rate Declined by 0.3% YOY in September

Washington, DC, November 2, 2026—The national September not seasonally adjusted construction unemployment rate was 3.5%, a 0.3% decrease from one year ago. According to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors, all 50 states had a construction unemployment rate below 10% and all but three states (Alaska, Minnesota and North Dakota) had a rate below 6%.

National NSA payroll construction employment was 103,000 higher than in September 2025. Seasonally adjusted payroll construction employment was 8.4 million, or 9.9% above its pre-pandemic peak of 7.6 million.

Estimated state construction unemployment rates were lower than their pre-pandemic (February 2020) level in 39 states. As of September 2026, 17 states had lower construction unemployment rates compared to September 2019, 31 states had higher rates and two (California and New Hampshire) had the same rate.

“The construction industry is facing increased energy prices, materials prices and labor costs, while longstanding issues of higher insurance premiums, tariffs on building materials, shortages of skilled labor and rising interest rates continue to plague the industry,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Data center construction is also absorbing a significant share of available skilled labor and contributing to elevated building materials prices.”