According to data released today by the US Bureau of Labor Statistics:
- The construction industry added 19,000 jobs on net in February. Year-over-year, industry employment has risen by 174,000 jobs, or an increase of 2.1%.
- Nonresidential construction employment increased by 6,200 positions on net, with growth in all 3 subcategories.
- "Economywide job growth was also perfectly decent, with U.S. employers adding 151,000 jobs last month. Following several weeks of concerning economic data and rising economic uncertainty, a good-but-boring jobs report is a welcome development"
Press Release from Associated Builders and Contractors, Inc (ABC)
ABC: Construction Employment Growth Strong in February
WASHINGTON, March 7—The construction industry added 19,000 jobs on net in February, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has increased by 174,000 jobs, an increase of 2.1%.
Nonresidential construction employment increased by 6,200 positions on net, with growth in all three subcategories. Heavy and civil engineering added the most jobs, increasing by 2,500 positions, followed by nonresidential specialty trade, which added 2,000 jobs. Nonresidential building added 1,700 jobs last month.
The construction unemployment rate rose to 7.2% in February. Unemployment across all industries increased from 4.0% in January to 4.1% last month.
“The February jobs report suggests that contractors’ ongoing optimism, as seen in ABC’s Construction Confidence Index, is justified,” said ABC Chief Economist Anirban Basu. “The industry added 19,000 jobs in February, making it the strongest month of growth since the third quarter of 2024, and the sizable jump in the industry unemployment rate indicates that the labor supply can accommodate ongoing hiring.
“Economywide job growth was also perfectly decent, with U.S. employers adding 151,000 jobs last month. Following several weeks of concerning economic data and rising economic uncertainty, a good-but-boring jobs report is a welcome development,” said Basu. "Federal government employment declined by 10,000 and will likely fall further in the coming months, but that segment is just 2% of overall employment. Federal job and spending cuts, as well as elevated uncertainty, could eventually diminish construction activity at the margins, but those effects have yet to appear in these employment data.”
Press Release from Associated General Contractors of America (AGC)
Construction Industry Adds Jobs in all Five Nonresidential and Residential Segments as Average Hourly Wages Rise to $36.55 an Increase of 4.0 Percent from a Year Ago Amid Tight Labor Conditions
Construction sector employment increased by 19,000 positions in February as all five nonresidential and residential segments of the industry added workers, according to an analysis of new government data the Associated General Contractors of America released today. Association officials warned that growing market uncertainty caused by tariffs and worsening labor shortages caused by evolving immigration policies could undermine future employment growth in the sector.
“Construction job growth hit a five-month high in February, following several months of lackluster gains,” said Ken Simonson, the association’s chief economist. “However, industry employment and wage growth have been slowing over much of the past year. Uncertainty, especially regarding tariffs and immigration policies, is causing new projects to be paused and may keep construction employment from rising further.”
Construction employment in February totaled 8,310,000, seasonally adjusted, an increase of 19,000 from January. Headcount rose by 174,000 jobs or 2.1 percent during the past 12 months, a slowdown from 189,000 jobs (2.4 percent) added in the previous 12 months. Nonresidential construction firms added 123,000 employees (2.6 percent) to payrolls from February 2024 to last month, somewhat fewer than the 148,000 (3.2 percent) added a year earlier. Residential construction employment rose by 51,000 jobs (1.5 percent) from February 2024 to last month, which amounted to a slight pickup from the 41,000 jobs (1.3 percent) added in the previous 12 months.
In February, nonresidential construction firms added 6,000 workers, with gains of 1,700 in building construction, 2,000 in specialty trades, and 2,500 in heavy and civil engineering construction. Residential construction employment climbed by 12,700, as homebuilders and other residential building construction firms added 100 positions and residential specialty trade contractors added 12,600.
Average hourly earnings for production and nonsupervisory employees in construction—covering most onsite craft workers as well as many office workers—climbed by 4.0 percent over the year to $36.55 per hour. In the previous 12 months, the same measure of pay increased 4.5 percent.
Association officials said growing uncertainty about whether tariffs will be imposed and for how long is already driving up prices for key construction materials. They added that the Trump administration’s decision to end work authorizations for workers from a variety of countries is shrinking an already tight labor market, making it hard for firms to keep pace with construction demand.
“It is always great to see the industry adding new construction jobs,” said Jeffrey Shoaf, the association’s chief executive officer. “But federal officials need to boost funding for construction education and training, and expand work authorization programs for the sector, for the industry to have enough people to keep pace with demand.”
