The Daily Dig
The construction industry lost 3,000 jobs on net in October, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data released November 6, 2026. Nonresidential construction moved in the opposite direction and added 13,300 positions.
The longer view is still positive, with industry employment up 124,000 jobs over the past year, a gain of 1.5%.
Split Level
“The construction industry lost jobs for the first time since February,” said ABC Chief Economist Anirban Basu. “As has been the case, however, job losses continued to be entirely concentrated on the residential side of the industry.”
All three nonresidential subcategories grew in October. Specialty trade contractors led the way with 7,900 new jobs.
Nonresidential building added 2,900 jobs, and heavy and civil engineering added 2,500.
Basu gave the credit to the data center boom. “Nonresidential construction employment, buoyed by the ongoing data center boom, expanded yet again and has grown more than twice as fast as economywide employment over the past year,” he said.
Shorthanded
The construction unemployment rate came in at 3.6% for October, while unemployment across all industries fell to 4.1%.
According to Basu, that 3.6% ties 2018 as the lowest October level since the turn of the century. He called the report “yet more evidence of reemerging construction worker shortages.”
Basu said the tight labor market is driving rapid wage growth. Average hourly earnings in construction grew at their fastest monthly pace in over three years in October.
Construction pay is now up 4.7% year over year, compared with 3.1% average wage growth across all industries.
Basu expects nonresidential payrolls to keep expanding in the coming months. ABC’s Construction Confidence Index shows nearly 50% of contractors plan to add staff over the next six months, while fewer than 12% expect to cut workers.
Snapshot:
Source: Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data
Release Date: November 6, 2026
Reporting Period: October 2026
Total Construction Jobs, Monthly: Down 3,000 (net)
Total Construction Jobs, Past Year: Up 124,000 (1.5%)
Nonresidential Jobs, Monthly: Up 13,300
Nonresidential Specialty Trade: Up 7,900
Nonresidential Building: Up 2,900
Heavy and Civil Engineering: Up 2,500
Nonresidential Growth vs. Overall Economy: More than twice as fast over the past year, per Anirban Basu
Job Losses: Entirely residential, per Anirban Basu
Last Monthly Industry Job Loss: February
Construction Unemployment Rate: 3.6%
Unemployment Rate, All Industries: 4.1% (down)
Historical Context: Ties 2018 as the lowest October construction unemployment rate since the turn of the century
Construction Hourly Earnings, Monthly: Fastest growth pace in over three years
Construction Hourly Earnings, Past Year: Up 4.7%
Wage Growth, All Industries: Up 3.1%
Contractors Planning to Add Staff (Next Six Months): Nearly 50%
Contractors Planning to Cut Staff: Fewer than 12%
Growth Driver Cited: Data center boom
Spokesperson: Anirban Basu, ABC Chief Economist
TheJobWalk Thoughts
Specialty trades led hiring in a market Basu says is buoyed by data centers, and that work leans heavily on electrical and mechanical scope. When qualified subs get scarce, they get choosier about their GCs. Lock in trade partners before bid day, not after award.
Construction wages are outpacing overall wage growth, 4.7% to 3.1%. A bid priced a year ago likely has light labor numbers, so check the escalation language on any long-lead job.
Basu says the job losses were entirely residential, and some of those workers have transferable skills. Contractors short on crews may find their next hires there.
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