The construction industry added 26,000 jobs in March, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment increased by 57,000 jobs, a gain of 0.7 percent.

Nonresidential construction employment rose by 12,200 positions, with gains across all three segments. Nonresidential building led with 4,500 jobs, followed by nonresidential specialty trade contractors with 3,900 jobs and heavy and civil engineering with 3,800 jobs.

The construction unemployment rate was 6.7 percent in March. Across all industries, unemployment declined to 4.3 percent, though it remains 0.1 percentage points higher than one year ago.

“Construction employment rebounded in March as both residential and nonresidential segments added jobs,” said ABC Chief Economist Anirban Basu. “Industrywide employment has expanded by an average of 19,300 jobs per month in 2026. That marks an improvement from 2025, when construction employment declined, but there are still concerns about the outlook.

“The March data do not reflect the ongoing effects of the conflict in Iran on construction costs,” Basu added. “Oil prices have climbed to levels not seen since 2022, and diesel prices have reached 5.40 dollars per gallon, up more than 1.90 dollars per gallon since the start of 2026. At the same time, higher Treasury yields are increasing borrowing costs. While contractors reported near-term optimism in February through ABC’s Construction Confidence Index, current conditions could pressure that outlook.”

Field Implications for Wall and Ceiling Contractors

Rising diesel and fuel-linked inputs directly affect delivered material costs for gypsum board, steel framing and acoustical ceiling systems. Higher interest rates may slow project starts, particularly in commercial interiors, tightening backlog visibility despite near-term labor gains.