Construction unemployment remained below 10% across every U.S. state in September 2026, indicating continued demand for construction labour despite persistent cost pressures and workforce challenges. A state-by-state analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC) found that the national construction unemployment rate declined from the previous year, while most states maintained rates below 6%.
The national not seasonally adjusted construction unemployment rate stood at 3.5% in September, a decrease of 0.3 percentage points compared with September 2025. All but three states recorded rates below 6%.
Maryland led the country with the lowest estimated construction unemployment rate at 1.7%, its lowest September level on record. North Carolina followed at 1.8%, while Georgia and Tennessee tied at 2.1%. South Carolina and Utah each recorded 2.2%.
At the other end of the rankings, North Dakota had the highest rate at 9.5%, followed by Alaska at 7.5% and Minnesota at 6.7%. Michigan and Massachusetts recorded rates of 5.8% and 5.5%, respectively.
Construction unemployment rates were below their February 2020 pre-pandemic levels in 39 states. Compared with September 2019, 17 states reported lower rates, 31 had higher rates and California and New Hampshire recorded unchanged levels.
However, the month-to-month figures showed a different direction. The national construction unemployment rate increased 0.4 percentage points from August to September. Rates rose in 44 states, declined in four and remained unchanged in Maryland and Oregon.
National construction payroll employment also showed continued growth. Not seasonally adjusted payroll construction employment was 103,000 higher than in September 2025. Seasonally adjusted construction employment reached 8.4 million, approximately 9.9% above its pre-pandemic peak of 7.6 million.
Despite relatively low unemployment, contractors continue to contend with rising energy, material and labour costs, along with elevated insurance premiums, tariffs on building materials, skilled-worker shortages and higher interest rates.
ABC's analysis also identified data centre construction as a factor affecting labour availability and material costs, as large projects compete for skilled workers and construction resources.
Low construction unemployment rates point to sustained labour demand, but they also highlight the pressure on contractors to recruit and retain skilled workers. Regional differences in unemployment can influence workforce availability, project scheduling and labour costs.
For construction owners and contractors, the combination of strong employment levels and ongoing cost pressures reinforces the importance of workforce development, training and careful labour planning as project demand continues across the United States.
Source: Central Ohio ABC.
