The Daily Dig
The construction industry added 26,000 jobs in March, according to an Associated Builders and Contractors analysis of Bureau of Labor Statistics data. Year over year, industry employment has grown by 57,000 positions, a 0.7% increase.
Nonresidential construction accounted for 12,200 of those gains. All three subcategories posted positive numbers: nonresidential building led with 4,500 new jobs, nonresidential specialty trade added 3,900, and heavy and civil engineering contributed 3,800.
The construction unemployment rate came in at 6.7% for March. Across all industries, unemployment fell to 4.3%, though it remains 0.1 percentage points above where it stood a year ago.
ABC Chief Economist Anirban Basu noted that industrywide employment has averaged 19,300 new jobs per month so far in 2026, a marked improvement from 2025, when construction employment actually declined. But Basu was direct about the headwinds the March data do not yet capture. Oil prices have risen to levels not seen since 2022. Diesel has hit $5.40 per gallon, up more than $1.90 since the start of the year. Rising treasury yields are adding fresh pressure on borrowing costs. Basu cited the ongoing conflict in Iran as driving those conditions and questioned how long contractor optimism, which was relatively optimistic as of ABC's February Construction Confidence Index, can hold.
Data Snapshot:
Report Source: ABC Analysis of U.S. Bureau of Labor Statistics Data
Data Period: March 2026
Total Jobs Added (March): 26,000
Year-Over-Year Job Growth: 57,000 positions (+0.7%)
2026 Monthly Average (YTD): 19,300 jobs
Nonresidential Jobs Added (March): 12,200
Nonresidential Building: 4,500
Nonresidential Specialty Trade: 3,900
Heavy and Civil Engineering: 3,800
Construction Unemployment Rate: 6.7%
Overall U.S. Unemployment Rate: 4.3%
Diesel Price at Time of Report: $5.40/gallon
Diesel Price Increase Since Jan. 1, 2026: +$1.90/gallon
TheJobWalk Thoughts
Diesel at $5.40 a gallon is a real problem for any scope with significant equipment hours: sitework, utilities, earthmoving, paving. If your active contracts don't have a fuel escalation clause, that $1.90 swing since January is coming straight out of your margin right now. On work not yet signed, get the clause in before you execute.
Rising treasury yields make project financing more expensive, and that slows owner decisions on whether to move forward. Business development teams that are in front of owners now, having real budget and schedule conversations, are building a pipeline that will matter later. The ones waiting for conditions to settle may find there is less to compete for when they do.
Courtesy of ABC
Courtesy of ABC
