Construction employment declined by 11,000 jobs in February, according to an analysis by the Associated Builders and Contractors of data released by the U.S. Bureau of Labor Statistics. Despite the monthly loss, industry employment remains up by 42,000 positions year over year, a gain of roughly 0.5 percent.

Nonresidential construction employment fell by 3,800 jobs during the month, with two of the sector’s three major segments reporting declines. Heavy and civil engineering contractors lost 6,500 jobs, while nonresidential specialty trade contractors shed 1,400 positions. Nonresidential building construction added 4,100 jobs, partially offsetting those losses.

The construction unemployment rate stood at 6.9 percent in February. Across all industries, the unemployment rate increased to 4.4 percent, up 0.2 percentage points compared to the same month last year.

According to ABC Chief Economist Anirban Basu, the latest employment data continues a broader slowdown in construction labor demand. Industry employment has declined in eight of the past 11 months, affecting both residential and nonresidential segments.

Recent economic indicators point to weakening momentum across the construction sector. Construction spending has declined for several consecutive quarters, and ABC’s Construction Backlog Indicator—a measure of contracted work yet to begin—fell to a four-year low in January.

For contractors and specialty trades, including wall and ceiling firms, sustained declines in backlog and spending could translate into fewer near-term project starts. Softening demand in heavy civil and specialty trades may also affect subcontractor availability and bid competition across interior scopes.

ABC also cited broader economic uncertainty affecting the industry outlook. Rising geopolitical tensions involving Iran, ongoing trade policy concerns, and crude oil prices above $80 per barrel could continue to pressure project costs and investment decisions through the early months of 2026.