Construction Jobs Dip in December as Nonresidential Sectors Lose Ground

WASHINGTON, DC — Building employment declined modestly in December, shedding 11,000 jobs on internet, based on an Related Builders and Contractors evaluation of newly launched knowledge from the US Bureau of Labor Statistics. Regardless of the month-to-month pullback, business employment stays barely increased than a 12 months in the past, up 14,000 jobs, or 0.2%.

Nonresidential building accounted for many of the losses, with employment down 7,800 positions. Heavy and civil engineering was the lone shiny spot, including 2,300 jobs, whereas nonresidential specialty commerce contractors and nonresidential constructing building shed 8,900 and 1,200 jobs, respectively.

The development unemployment charge held at 5.0% in December. Throughout all industries, unemployment declined to 4.4%, although it stays 0.3 proportion factors increased than this time final 12 months.

Powerful Begin to the 12 months

“The development business added simply 14,000 internet new jobs in 2025,” mentioned ABC Chief Economist Anirban Basu. “Excluding the primary 12 months of the COVID-19 pandemic, that’s the worst 12-month efficiency since 2011, when the development business was nonetheless spiraling from the Nice Recession. Whereas the nonresidential aspect of the business carried out considerably higher over the previous 12 months, even that section’s momentum has began to wane. Nonresidential specialty commerce contractors, demand for which led the business in 2025, posted its worst month in almost 4 years, shedding 8,900 jobs in December.

“Regardless of this dismal efficiency, the business’s unemployment charge stays comparatively low, down 0.2 proportion factors from the identical time final 12 months,” mentioned Basu. “This uncommon dynamic—reducing employment however a gentle unemployment charge—doubtless displays the results of immigration coverage on the business’s workforce. Because of this, common hourly earnings for manufacturing and nonsupervisory building staff have been up 4.5% on a year-over-year foundation in each November and December, a pointy enhance from the three.9% enhance noticed in October.

‘Whereas contractors stay optimistic about hiring over the subsequent six months, based on ABC’s Construction Confidence Index, current declines in backlog, ongoing declines in building spending and December’s job losses recommend it could possibly be a tough begin to 2026 for the business.”