The Daily Dig
The construction industry added 17,000 net jobs in May, with nonresidential work accounting for the bulk of those gains. According to an Associated Builders and Contractors analysis of the latest Bureau of Labor Statistics data, nonresidential employment grew by 15,700 positions. Specialty trades led the way at 11,400 new jobs, heavy and civil engineering added 2,600, and nonresidential building contributed 1,700.
Year over year, construction employment is up 68,000 jobs, a 0.8% increase. The construction unemployment rate came in at 4.1% in May, just below the national rate of 4.3%, which held flat from the prior month and from a year ago.
ABC Chief Economist Anirban Basu pointed to data center demand and publicly funded construction activity as the forces sustaining momentum heading into the coming months. He also noted that contractors remain broadly optimistic about growing their headcount over the next six months, citing ABC's Construction Confidence Index.
The bigger story in the May report, however, is not necessarily good news for construction. Basu noted that economy-wide job growth has accelerated to a pace not seen since early 2024, and that the broader economy's resilience, combined with resurgent inflation, makes rate hikes more likely than rate cuts over the next several quarters. High borrowing costs and tight lending standards, he said, will continue to weigh on construction activity in the months ahead.
Snapshot:
Report Source: ABC analysis of U.S. Bureau of Labor Statistics data
Release Date: June 5, 2026
Total Industry Jobs Added (May): 17,000
Nonresidential Jobs Added (May): 15,700
Nonresidential Specialty Trades: +11,400
Heavy and Civil Engineering: +2,600
Nonresidential Building: +1,700
Year-Over-Year Employment Growth: +68,000 jobs / +0.8%
Construction Unemployment Rate (May): 4.1%
National Unemployment Rate (May): 4.3%
Key Demand Drivers: Data center construction, publicly funded projects
Outlook Risk: Rate hikes, high borrowing costs, tight lending standards
Contractor Sentiment: Broadly optimistic (ABC Construction Confidence Index)
TheJobWalk Thoughts
Specialty trades adding 11,400 jobs in a single month puts real pressure on labor availability. Subcontractors pricing work over the next six to twelve months need to account for that in their labor rates and schedules. Crews that were available six months ago may not be now, and that changes what a realistic bid looks like.
The rate hike warning is worth sitting with. High borrowing costs already weigh on construction activity broadly, and if rates climb further, that pressure intensifies. Contractors carrying variable rate debt or relying on owner-financed projects should be watching their backlog mix closely. Work backed by public funding or institutional capital is more insulated. Work dependent on private development financing is more exposed.
