WASHINGTON — The national June not seasonally adjusted construction unemployment rate was 4.7%, a 1.3% increase from June 2025, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. The analysis found that every state had a construction unemployment rate below 10% and all but three states (Connecticut, New Jersey and Rhode Island) had a rate below 7%.
National NSA payroll construction employment was 59,000 higher than in June 2025, its 14th straight month of year-over-year increases below 100,000. Seasonally adjusted payroll construction employment was 8.3 million, or 9.5% above its pre-pandemic peak of 7.6 million.
Estimated state construction unemployment rates were lower than their pre-pandemic (February 2020) level in 34 states. As of June 2026, 17 states had lower construction unemployment rates compared to June 2019, 32 states had higher rates and one (Louisiana) had the same rate.
“The on-again, off-again active hostilities against Iran have injected more than the usual volatility in energy prices. Overall, energy prices are significantly higher than a year ago, which is having a negative impact on the construction industry. Moreover, increased insurance premiums, rising labor costs, shortages of skilled labor and elevated interest rates all continue to be impediments to construction activity,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Meanwhile, the imposition of tariffs—both in place and proposed—on building materials is creating an additional headache for the industry, further reducing willingness to undertake new construction projects and driving up the cost of many current projects.”
Recent Month-to-Month Fluctuations
In June, the national NSA construction unemployment rate rose 0.6% from May. Among the states, 11 had lower rates, 38 posted higher rates and one (Oklahoma) had the same estimated construction unemployment rates as in May.
The Top States
The six states with the lowest estimated NSA construction unemployment rates for June were:
- Alaska, 1.4%
- Wyoming, 1.6%
- New Hampshire, 1.9%
- Oklahoma, 2.4%
- Colorado and Indiana (tie), 2.5%
Alaska had its lowest June NSA estimated construction unemployment rate on record at 1.4%. The state also had the third-largest year-over-year decrease (down 0.3%) and monthly decline (down 0.7%). Wyoming had the largest year-over-year reduction (down 0.7%) and the second-largest monthly decrease (down 0.8%).
The Bottom States
The six states with the highest NSA construction unemployment rates in June were:
- Illinois and Minnesota (tie), 6.8%
- New Mexico, 6.9%
- Rhode Island, 8.5%
- New Jersey, 8.9%
- Connecticut, 9.9%
New Mexico had the largest drop in its rate from May among the states, down 1.8%.
Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.
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