ABC: Nonresidential Construction Adds Healthy 15,700 Jobs in May

The U.S. construction industry added 17,000 jobs in May, continuing a steady growth trend driven by strong demand for data centers, infrastructure projects, and other nonresidential construction activity, according to an analysis of newly released federal employment data.

Nonresidential Construction Leads Hiring Growth

Data from the U.S. Bureau of Labor Statistics, analyzed by Associated Builders and Contractors (ABC), shows construction employment increased by 68,000 jobs over the past 12 months, a year-over-year gain of 0.8%.

The strongest growth occurred in the nonresidential construction sector, which added 15,700 positions in May. Nonresidential specialty trade contractors led the increase with 11,400 new jobs, while heavy and civil engineering construction and nonresidential building construction added 2,600 and 1,700 jobs, respectively.

Labor Market Remains Stable

The construction unemployment rate stood at 4.1% in May, slightly below the national unemployment rate of 4.3%, which remained unchanged from a year ago.

ABC Chief Economist Anirban Basu said the industry’s hiring momentum reflects continued investment in large-scale projects, particularly data centers and publicly funded construction initiatives. He noted that contractors remain optimistic about expanding their workforce in the coming months, according to ABC’s Construction Confidence Index.

Strong Economy Creates New Challenges

At the same time, Basu said the broader U.S. labor market may present challenges for the industry. Overall job growth accelerated in May, signaling continued economic resilience despite concerns about inflation and interest rates.

While a strong labor market is generally positive for the economy, it may reduce the likelihood of near-term interest rate cuts. Higher borrowing costs and tighter lending standards continue to create headwinds for commercial construction and development projects, particularly those dependent on financing.

Outlook: Growth Continues, But Headwinds Remain

As a result, industry leaders are closely monitoring economic conditions even as demand for skilled construction workers remains strong.

The latest employment figures underscore the construction industry’s ongoing role in supporting economic growth while highlighting the challenges contractors face in balancing workforce expansion with a changing financial landscape.