US Nonresidential Construction Employment Increases in March

On Friday, Associated Builders and Contractors (ABC) reported that nonresidential construction employment rose by 12,200 positions in March, based on its analysis of US Bureau of Labor Statistics (BLS) nonfarm payroll data, with gains across all three subcategories.

Nonresidential building led job growth, adding 4,500 positions. Nonresidential specialty trade increased by 3,900 jobs, while heavy and civil engineering added 3,800.

The construction unemployment rate stood at 6.7% in March. Across all industries, the unemployment rate fell to 4.3%, although it remained 0.1 percentage points higher than a year earlier.

In remarks accompanying the report, ABC Chief Economist Anirban Basu said:

“Construction employment rebounded in March as both the residential and nonresidential segments added jobs for the month. Industrywide employment has expanded by an average of 19,300 jobs per month in 2026. That’s a marked improvement from 2025, when construction employment actually declined, but there remains cause for concern about the industry’s outlook.

The March jobs data do not capture the detrimental ways in which the conflict in Iran will continue to affect the construction industry. Oil prices have risen to heights not seen since 2022 and diesel prices have soared to $5.40 per gallon, up more than $1.90 per gallon from the start of 2026. At the same time, higher treasury yields have put renewed pressure on borrowing costs. While contractors were relatively optimistic about the near-term outlook as of February, according to ABC’s Construction Confidence Index, it remains to be seen how long that optimism can persist under current economic conditions.”