WASHINGTON — The construction industry added 13,000 jobs on net in March, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has risen by a mere 143,000 jobs, an increase of 1.8%.
Nonresidential construction employment increased by 22,300 positions on net in March, with growth in 2 of the 3 subsegments. Nonresidential specialty trade added the most jobs, with a monthly increase of 19,300 positions, while heavy and civil engineering added 3,400 jobs. The nonresidential building subsegment lost 400 positions.
The construction unemployment rate decreased to 5.4% in March and is unchanged from one year ago. Unemployment across all industries rose from 4.1% in February to 4.2% last month.
“At first glance, this is a perfectly fine jobs report for the construction industry,” said ABC Chief Economist Anirban Basu. “The details, however, give cause for concern. With downward revisions to the January and February numbers, the industry added just 8,000 jobs per month during the first quarter of 2025. Construction employment is up just 1.8% since March 2024, the slowest year-over-year growth in four years.
“March’s labor market data is a lesser concern in light of the sweeping tariffs announced on April 2,” said Basu. “What amounts to the largest tax hike since 1968 will reduce construction activity due to rising input costs, shaken business confidence and potentially higher-for-longer interest rates. While contractors were sanguine about the outlook as of last month, according to ABC’s Construction Confidence Index, industry expectations are likely to worsen in the coming months.”
Construction employment increased in 189, or 53 percent, of 360 metro areas between February 2024 and February 2025, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials warned that new and increased tariffs announced yesterday are likely to cause some projects to be paused or canceled and could lead to fewer areas having job gains.
“Falling business and consumer confidence, along with rising costs from tariffs, are causing projects to be delayed or canceled,” said Ken Simonson, the association’s chief economist and economic contributor to tED magazine. “These challenging conditions are leading to less widespread job growth than previously.”
AGC officials said the number of metros with construction employment gains has already slowed from a year ago. They warned that tariffs will make construction more expensive and are likely to trigger retaliatory measures that harm U.S. businesses and workers, leading to further cutbacks in construction. They urged the Trump administration to reduce or eliminate tariffs as soon as possible to limit harm to contractors, other businesses, and consumers.
“Now that the President has provided specific details about his tariff plans, the private sector can decide how best to proceed with planned projects,” said Jeffrey D. Shoaf, the association’s chief executive officer. “Our hope is that the benefits of greater clarity and supply chain certainty outweigh the impacts of higher materials prices and construction costs.”
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