The national December 2025 not seasonally adjusted construction unemployment rate was 5.0 percent, a 0.2 percent decrease from December 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors. The analysis found that 60 percent of states (30) had lower estimated construction unemployment rates over the same period, 17 had higher rates and three states (New Hampshire, Pennsylvania and Texas) were unchanged. All but five states had construction unemployment rates below 8 percent.

Note: As a result of the 2025 government shutdown, no October labor data were collected, so those data are not available.*

National not seasonally adjusted payroll construction employment was 12,000 higher than in December 2024, its smallest year-over-year increase since March 2021, when employment fell during the pandemic. Seasonally adjusted payroll construction employment was 8.3 million, or 9.1 percent above its pre-pandemic peak of 7.6 million.

Estimated state construction unemployment rates were lower than their pre-pandemic level in 60 percent of states. As of December 2025, 30 states had lower construction unemployment rates compared to December 2019, while 18 states had higher rates and two states (Georgia and New Mexico) were unchanged.

“The construction industry continues to contend with weaker demand as headwinds from tariffs and supply disruptions push building materials prices higher, insurance costs increase and an uptick in immigration enforcement contributes to a shortage of skilled construction workers,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “These factors have added pressure to raise wages and salaries. On the positive side, a somewhat easier policy stance by the Federal Reserve has resulted in lower interest rates, and further declines are likely this year. Adoption of software and equipment powered by artificial intelligence may help some companies control costs and improve efficiency with their existing workforce.”

Recent Month-to-Month Fluctuations

In December, the national not seasonally adjusted construction unemployment rate increased 0.9% from November. Three states (Alabama, Montana and New Mexico) had lower rates, 44 posted higher rates and three states (Alaska, Georgia and Mississippi) were unchanged.

The Top States

The six states with the lowest estimated not seasonally adjusted construction unemployment rates for December were:

1. Hawaii, 2.0 percent

2. Oklahoma, 2.5 percent

3. Colorado, 2.7 percent

4. Georgia, Indiana and Mississippi (tie), 2.8%

Both Hawaii and Indiana recorded their lowest December not seasonally adjusted estimated construction unemployment rates on record. *Note: Hawaii’s unemployment rate is for construction plus mining and logging.* Colorado posted its second-lowest December rate on record, behind the 1.8% rate the state achieved in December 2021. Georgia and Oklahoma each recorded their third-lowest December construction unemployment rates on record.

The Bottom States

The five states with the highest **December** estimated not seasonally adjusted construction unemployment rates were:

46. Illinois, 9.4 percent

47. New Jersey, 10.1 percent

48. Connecticut, 10.5 percent

49. Rhode Island, 11.2 percent

50. Minnesota, 13.4 percent

Rhode Island recorded its lowest December rate since December 2022, when it posted an 8.9% rate.

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.