The national construction unemployment rate was 3.5% in September (not seasonally adjusted), down 0.3% from a year earlier, according to an Associated Builders and Contractors analysis of BLS data released Oct. 30.
Every state came in under 10%, and all but three (Alaska, Minnesota and North Dakota) were under 6%. Maryland posted its lowest September rate on record at 1.7%.
More Hard Hats on the Clock:
National NSA payroll construction employment was 103,000 higher than in September 2025.
Seasonally adjusted payroll employment reached 8.4 million, 9.9% above its pre-pandemic peak of 7.6 million.
Not Quite 2019: The longer view is more mixed. Construction unemployment rates were lower than their February 2020 levels in 39 states.
Against September 2019, though, only 17 states posted lower rates. Another 31 were higher, while California and New Hampshire matched.
Ranked by rate:
Maryland: 1.7%
North Carolina: 1.8%, its second lowest on record
Georgia and Tennessee (tie): 2.1%, Tennessee’s second lowest on record
South Carolina and Utah (tie): 2.2%
The Five Highest Rates: North Dakota had the highest rate at 9.5%, followed by Alaska (7.5%), Minnesota (6.7%), Michigan (5.8%) and Massachusetts (5.5%).
A Rough September: The national rate rose 0.4% from August, and 44 states saw their rates climb. Only four states improved, while Maryland and Oregon held steady.
Pressure From Every Direction: Bernard Markstein, who conducted the analysis for ABC, pointed to rising energy, materials and labor costs. He also cited higher insurance premiums, tariffs on building materials, skilled labor shortages and rising interest rates.
He added that data center construction is absorbing a significant share of available skilled labor and contributing to elevated building materials prices.
Payrolls are growing, but data center projects are drawing from the same skilled labor pool the rest of the industry needs.
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