Image courtesy Associated Builders and Contractors (ABC)
The not seasonally adjusted (NSA) national construction unemployment rate, at 4.4 percent, was unchanged in December from 2022, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC). The analysis also found that 25 states had lower unemployment rates over the same period, four were unchanged, and 21 states were higher.
National NSA payroll construction employment was 230,000 higher than in December 2022. Starting in February 2022 through December 2023, seasonally adjusted construction employment exceeded its pre-pandemic peak of 7.6 million.
In December, 31 states had lower construction unemployment rates compared to December 2019, three states’ rates (Missouri, Oklahoma, and Oregon) were unchanged, and 16 states had higher rates.
“Continued high interest rates have been a drag on plans for new construction,” says Bernard Markstein, president and chief economist at Markstein Advisors, which completed the analysis for ABC. “However, industry employment remains healthy, as builders work on their backlog of projects and employers fill some of their advertised positions. Nonresidential construction activity and employment is benefiting from federal funding and tax incentives for manufacturers, as well as funding for state and local infrastructure projects.”
National and state unemployment rates are best evaluated on a year-over-year basis because these industry-specific rates are not seasonally adjusted. However, due to shifting effects on the economy from high interest rates, energy price fluctuations and other national and international developments, month-to-month comparisons offer insight into the variable economic environment impact from these factors on construction employment.
In December, 32 states had lower estimated construction unemployment rates than in November, 17 states had higher rates, and one, Maryland, had the same rate.
The following five states had the lowest estimated NSA construction unemployment rates in December:
- Maryland, 0.5 percent
- Georgia, 1.7 percent
- Utah, 1.9 percent
- Delaware and Tennessee, tied at 2.1 percent
Maryland and Georgia each posted their lowest December NSA estimated construction unemployment rate on record. Utah had its second lowest December rate, behind 2022’s 1.8 percent. Delaware and Tennessee both came in with their lowest December rate on record for the second time (Delaware matching its December 2018 rate and Tennessee its 2022 rate). Note: Delaware’s unemployment rate is for construction, mining, and logging.
The following five states had the highest December estimated NSA construction unemployment rates:
- Vermont, 7.3 percent
- Illinois, 7.5 percent
- Alaska, 9.4 percent
- Connecticut, 10.5 percent
- Rhode Island, 11.3 percent
Alaska posted its lowest December NSA estimated construction unemployment rate on record and had the largest monthly decline in its rate (down 4.8 percent). Vermont had the third largest year-over-year drop in its unemployment rate (down 2.6 percent), behind South Dakota (down 3.4 percent) and Minnesota (down 2.8 percent).
Click here to view more of ABC’s data charts.
