All 50 States Had Construction Unemployment Lower Than 10 Percent in September

by David Flaherty | 22 December 2025 12:30 pm

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The national construction unemployment rate in September 2025 was 3.8 percent, a 0.1 percentage point increase from September 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data by Associated Builders and Contractors[2] (ABC).
The analysis found 26 states had lower estimated construction unemployment rates over the same period, 21 had higher rates, and three states (Alaska, California, and Texas) had the same rates. All states had construction unemployment rates below 10 percent.
Following the end of the longest government shutdown on record (43 days), government data agencies are once more collecting and releasing important economic data. Note that, as a result of the shutdown, no October labor data will be made available, as the BLS was unable to collect the necessary data.
National non-seasonal adjusted (NSA) payroll construction employment was 33,000 higher than September 2024, and seasonally adjusted payroll construction employment was 8.3 million, or 9.1 percent above its pre-pandemic peak of 7.6 million. However, construction employment increases are slowing; this was the third month in a row that the year-over-year gain was under 100,000 after over four years of six-digit year-over-year gains.
Estimated state construction unemployment rates were lower than their pre-pandemic level in just over 40 percent of states. As of September 2025, 21 states had lower construction unemployment rates compared to September 2019, while 27 states had higher rates and two states (Arkansas and Washington) had the same rate.
“Higher building materials costs due to tariffs[3], higher insurance costs and rising labor costs along with a shortage of skilled construction workers are weighing upon the construction industry,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “On the positive side, a somewhat easier policy stance by the Federal Reserve has resulted in lower interest rates. Further declines in interest rates are likely in 2026.”

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