Construction jobs stumble into 2026 after weak year
(UI) — The U.S. construction industry shed 11,000 jobs in December, closing out 2025 with its weakest annual employment growth in more than a decade, according to an analysis by Associated Builders and Contractors based on new federal data.
Construction added just 14,000 net jobs in 2025, a gain of 0.2% year over year. Excluding the first year of the COVID-19 pandemic, that marks the industry’s slowest annual employment growth since 2011.
Nonresidential construction employment declined by 7,800 jobs in December, with losses concentrated in specialty trades and nonresidential building. Heavy and civil engineering was the lone bright spot, adding 2,300 jobs during the month. Nonresidential specialty trade contractors lost 8,900 jobs, while nonresidential building employment fell by 1,200.
“The construction industry added just 14,000 net new jobs in 2025,” said ABC Chief Economist Anirban Basu. “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. While the nonresidential side of the industry performed significantly better over the past year, even that segment’s momentum has started to wane. 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.”
The construction unemployment rate stood at 5.0% in December, while unemployment across all industries fell to 4.4%, though it remains 0.3 percentage points higher than a year ago.
“Despite this dismal performance, the industry’s unemployment rate remains relatively low, down 0.2 percentage points from the same time last year,” Basu said. “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 declines in construction spending and December’s job losses suggest it could be a difficult start to 2026 for the industry.”
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