BLS: Construction Employment Fell by 11K Jobs in December

WASHINGTON, Jan. 9, 2026 — The construction industry lost 11,000 jobs on net in December 2025, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Bureau of Labor Statistics (BLS). On a year-over-year basis, industry employment grew by just 14,000 jobs last year, an increase of 0.2%.

“Excluding the first year of the COVID-19 pandemic, that’s the worst 12-month performance since 2011, when the construction industry was still spiraling from the Great Recession," noted ABC Chief Economist Anirban Basu. "While the nonresidential side of the industry performed significantly better over the past year, even that segment’s momentum has started to wane."

Nonresidential construction employment decreased by 7,800 positions on net, with losses in 2 of the 3 subcategories. Heavy and civil engineering added 2,300 jobs, while nonresidential specialty trade and nonresidential building lost 8,900 and 1,200 jobs, respectively.

The overall construction unemployment rate registered as 5% in December. Across all industries, unemployment dropped to 4.4% for the month, but is 0.3 percentage points higher than one year ago.

Of note, nonresidential specialty trade contractors, demand for which led the industry in 2025, posted its worst month in nearly four years, losing 8,900 jobs in December. 

“Despite this dismal performance, the industry’s unemployment rate remains relatively low, down 0.2 percentage points from the same time last year,” added Basu. “This unusual dynamic—decreasing employment but a steady unemployment rate—likely reflects the effects of immigration policy on the industry’s workforce. As a result, average hourly earnings for production and nonsupervisory construction workers were up 4.5% on a year-over-year basis in both November and December, a sharp increase from the 3.9% increase observed in October."

While contractors remain optimistic about hiring over the next six months, according to ABC’s Construction Confidence Index, "recent declines in backlog, ongoing decreases in construction spending and December’s job losses suggest it could be a difficult start to 2026 for the industry,” he warned.

Earlier this week, BLS also reported that the U.S. construction industry had 292,000 job openings as of the last day of November, according to its Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 90,000 during the month and are up by 15,000 from the same time last year.

“Construction job openings rose meaningfully in November and were up on a year-over-year basis for the first time since July,” noted Basu. “At the same time, the industrywide pace of layoffs plunged to the lowest level of 2025, matching the second-lowest rate ever recorded. While these dynamics suggest that demand for construction workers accelerated in November, hiring remains slower than at any point on record prior to 2020." 

Even so, contractors still remain relatively upbeat about expanding staffing levels during the first half of 2026, according to ABC’s Construction Confidence Index. "But the month-to-month volatility of JOLTS data and persistently sluggish pace of hiring could temper that optimism,” cautioned the ABC economist.

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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.

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 offer a robust employee value proposition, 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.