ABC: Every State Had June Construction Unemployment Rates Below 10%

WASHINGTON, July 30—The national June 2025 not seasonally adjusted construction unemployment rate was 3.4%, a 0.1% increase from June 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. The analysis found that 18 states had lower estimated construction unemployment rates over the same period, 28 had higher rates and four states had the same rates. All of the states had construction unemployment rates below 10%.

National NSA payroll construction employment was 114,000 higher than June 2024. As of June 2025, seasonally adjusted payroll construction employment was 8.3 million, or 9.4%, above its pre-pandemic peak of 7.6 million.

Estimated state construction unemployment rates were lower than their pre-pandemic level in three-quarters of states. As of June 2025, 37 states had lower construction unemployment rates compared to June 2019 while 12 states had higher rates, and one state (Kansas) had the same rate.

“While June state construction unemployment rates continue to indicate a relatively healthy level of construction employment, uneasiness that the economy might weaken over the remainder of this year and into 2026 is producing some hesitancy among builders and developers about proceeding with new projects,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.

“The impact of tariffs on building materials is already showing up in some prices. Meanwhile, uncertainty surrounding the level of tariffs on building materials going forward and how long they will be in place hangs over the industry. Further, the industry continues to face elevated interest rates and higher labor costs. Although most builders are loath to lay off workers at present, they are more cautious in their hiring.”

Recent Month-to-Month Fluctuations

In June, the national NSA construction unemployment rate declined 0.1% from May. Among the states, 29 had lower rates, 19 higher rates and two states (Arkansas and Kentucky) had the same estimated construction unemployment rates as in May.

The Top States

The five states with the lowest estimated NSA construction unemployment rates for June were:

1. South Dakota, 0.8%
2. North Dakota, 1.2%
3. New Hampshire, 1.3%
4. Montana and Oklahoma (tie), 1.5%

South Dakota, North Dakota, Montana and Oklahoma each posted their lowest June NSA estimated construction unemployment rate on record. New Hampshire had its third-lowest June rate on record. This was the third time that North Dakota’s June unemployment rate fell to 1.2%, its lowest June rate on record, matching that month’s rate for 2015 and 2022. South Dakota had the largest year-over-year drop in its rate among the states, down 1.7%. Montana followed with the second biggest decrease, down 1.5% (tied with Illinois).

The Bottom States

The five states with the highest June estimated NSA construction unemployment rates were:

1. Maryland, 4.6%
2. New Mexico, 4.8%
3. Connecticut, 5.2%
4. New Jersey, 8.5%
5. Rhode Island, 8.9%

New Mexico recorded its second lowest June rate on record, behind June 2022’s 3.7% rate. Rhode Island had the largest decrease in its monthly NSA estimated construction unemployment rate among the states, down 1.9%.

Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

Celebrating its 75th anniversary in 2025, Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 23,000 members. Founded on the merit shop philosophy, ABC helps members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org