Non-Residential Construction Hiring Drives Increses in April

The U.S. construction industry added 9,000 jobs in April, according to new data analyzed by Associated Builders and Contractors from the U.S. Bureau of Labor Statistics. While overall industry growth remained modest, the nonresidential construction sector posted strong gains fueled by continued expansion in data center construction and commercial infrastructure projects.

Key Construction Employment Numbers for April

• Total construction industry jobs added: 9,000
• Year-over-year construction job growth: 50,000 jobs
• Annual industry employment growth rate: 0.6%
• Nonresidential construction jobs added: 19,000
• Construction unemployment rate: 3.8%
• U.S. national unemployment rate: 4.3%

Nonresidential Construction Continues to Outperform Residential Sector

Nonresidential construction hiring accounted for the industry’s strongest gains in April, reinforcing ongoing demand for commercial construction, infrastructure development, and technology-related building projects.

Nonresidential construction job gains included:

• Non-residential specialty trade contractors: +12,600 jobs
• Non-residential building contractors: +5,600 jobs
• Heavy and civil engineering construction: +800 jobs

According to Anirban Basu, weakness in residential construction continues to suppress broader industry employment growth, while the commercial and infrastructure sectors remain comparatively healthy.

“Construction employment expanded modestly in April, but that’s largely due to weakness on the residential side of the industry,” Basu said. “Non-residential construction employment rose at a healthy pace for the month and is up a respectable 2.0% over the past year.”

Data Center Construction Emerging as Major Industry Driver

ABC economists point to surging investment in data center construction as one of the largest forces driving current non-residential construction hiring trends.

Data center construction spending has increased 34% over the past year, fueled by:

• Artificial intelligence infrastructure expansion
• Cloud computing growth
• Increased digital storage demand
• Ongoing technology sector investment

The rapid growth of AI and digital infrastructure projects is creating sustained demand for skilled construction labor nationwide.

Construction Confidence Remains Strong Despite Slower Overall Hiring

Despite slower headline construction job growth, contractor confidence remains elevated, according to ABC’s Construction Confidence Index.

ABC member firms continue reporting strong expectations for:

• Hiring
• Backlog
• Sales
• Future project activity

Industry analysts say current hiring trends underscore how technology infrastructure and large-scale capital projects are reshaping the future of the U.S. nonresidential construction market.

Why This Matters for the Construction Industry

The April employment report highlights a growing divide between residential and nonresidential construction performance. While higher interest rates continue pressuring housing activity, commercial construction tied to AI infrastructure, data centers, and institutional investment continues driving industry expansion.

Economists expect demand for skilled labor in nonresidential construction to remain strong throughout 2026 as developers race to expand America’s digital infrastructure capacity.