BLS: Industry Added 28K Jobs in November
Key Highlights
- Nonresidential construction employment increased by 28,800 jobs in December, up 0.7% in year-over-year growth;
- The industry added 58,000 total jobs over the past year, driven mainly by data center projects;
- Construction backlogs fell to 8.1 months in November, the lowest since February 2024, especially impacting smaller contractors;
- Despite backlog declines, contractors remain optimistic about sales and staffing levels over the next six months;
- Profit margin expectations are the lowest in over a year, influenced by rising materials costs and economic uncertainties.
WASHINGTON, Dec. 16 — Nonresidential construction employment increased by 28,800 positions in the U.S. last month, according to new data from the U.S. Bureau of Labor Statistics (BLS). On a year-over-year basis, industry employment has expanded by 58,000 jobs, an increase of 0.7%.
An Associated Builders and Contractors (ABC) analysis of the latest numbers found that the nonresidential specialty trade category added 18,700 jobs, while nonresidential building and heavy and civil engineering added 5,100 and 5,000 jobs, respectively.
The construction unemployment rate was 4.1% in November. Unemployment across all industries rose to 4.6% and is 0.4 percentage points higher than one year ago.
“Construction industry job growth has picked up over the past three months,” said ABC Chief Economist Anirban Basu. “The industry has added 52,000 jobs since August, a stark reversal from the 9,000 jobs lost during the first eight months of the year."
Basu explained that the recent rebound has been led by rapid growth in nonresidential specialty trade contractor employment, a trend that is at least partially due to the surging need for electricians caused by the ongoing data center construction boom.
"While overall industry employment growth may remain sluggish due to ongoing residential segment job losses, nonresidential contractors remain optimistic about their staffing levels, according to ABC’s Construction Confidence Index,” he added.
Contractor Backlogs Slipped, Confidence Mixed
Meanwhile, ABC also reported Dec. 16 that its Construction Backlog Indicator fell to 8.1 months in November, according to a member survey conducted from Nov. 20 to Dec. 8. The reading is down 0.3 months since both October 2025 and November 2024.
View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for November. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Backlog is down on both a monthly and yearly basis for every size of contractor other than those with greater than $100 million in annual revenues.
ABC’s Construction Confidence Index reading for sales increased in November, while the readings for profit margins and staffing levels declined. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.
“Backlog declined sharply in November and is now at the lowest level since February 2024,” noted economist Basu. “The decline was particularly steep for the smallest contractors; ABC members with under $30 million in annual revenues registered their lowest backlog reading in over four years. Notably, fewer than 6% of those smallest contractors are under contract to work on data center projects, well below the 37% share for contractors with greater than $100 million in annual revenues."
Even so, despite the decline in backlog, contractors remain broadly optimistic that their sales and staffing levels will expand over the next six months, added Basu. “At the same time, just 33.6% of contractors expect their profit margins to expand over the next two quarters, the lowest share in over a year. That likely reflects growing anxiety about materials costs, which have started to rise after several quarters of relative stability.”
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Note: The reference months for the Construction Backlog Indicator and Construction Confidence Index data series were revised on May 12, 2020, to better reflect the survey period. CBI quantifies the previous month's work under contract based on the latest financials available, while CCI measures contractors' outlook for the next six months. View the methodology for both indicators.
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Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
Celebrating its 75th anniversary in 2025, Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org.
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For more, contact Erika Walter, ABC | [email protected]