The national June 2025 not seasonally adjusted (NSA) construction unemployment rate was 3.4 percent, a 0.1 percent increase from June 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data by Associated Builders and Contractors (ABC). The analysis found that 18 states had lower estimated construction unemployment rates over the same period, 28 had higher rates, and four states had the same rates. All of the states had construction unemployment rates below 10 percent.
National NSA payroll construction employment was 114,000 higher than in June 2024. As of June 2025, construction employment was 8.3 million, or 9.4 percent, above its pre-pandemic peak of 7.6 million.
Estimated state construction unemployment rates were lower than their pre-pandemic level in three-quarters of states. As of June 2025, 37 states had lower construction unemployment rates compared to June 2019, while 12 states had higher rates, and one state (Kansas) had the same rate.
“While June state construction unemployment rates continue to indicate a relatively healthy level of construction employment, uneasiness that the economy might weaken over the remainder of this year and into 2026 is producing some hesitancy among builders and developers about proceeding with new projects,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.
“The impact of tariffs on building materials is already showing up in some prices. Meanwhile, uncertainty surrounding the level of tariffs on building materials going forward and how long they will be in place hangs over the industry. Further, the industry continues to face elevated interest rates and higher labor costs. Although most builders are loath to lay off workers at present, they are more cautious in their hiring,” he added.
The five states with the lowest estimated NSA construction unemployment rates for June were:
1. South Dakota, 0.8 percent
2. North Dakota, 1.2 percent
3. New Hampshire, 1.3 percent
4. Montana and Oklahoma (tie), 1.5 percent
South Dakota, North Dakota, Montana, and Oklahoma each posted their lowest June NSA estimated construction unemployment rate on record. New Hampshire had its third-lowest June rate on record.
This was the third time that North Dakota’s June unemployment rate fell to 1.2 percent, its lowest June rate on record, matching that month’s rate for 2015 and 2022. South Dakota had the largest year-over-year drop in its rate among the states, down 1.7 percent. Montana followed with the second biggest decrease, down 1.5percent (tied with Illinois).
The five states with the highest June estimated NSA construction unemployment rates were:
46. Maryland, 4.6 percent
47. New Mexico, 4.8 percent
48. Connecticut, 5.2 percent
49. New Jersey, 8.5 percent
50. Rhode Island, 8.9 percent
New Mexico recorded its second lowest June rate on record, behind June 2022’s 3.7 percent rate. Rhode Island had the largest decrease in its monthly estimated NSA construction unemployment rate among the states, down 1.9.
