The construction unemployment rate across the U.S. saw a noticeable rise in December 2024, as the national not seasonally adjusted (NSA) construction unemployment rate increased to 5.2%, marking a 0.8% rise from the same period in 2023. This data, based on the latest U.S. Bureau of Labor Statistics report and analyzed by Associated Builders and Contractors (ABC), highlighted that only six states saw a decrease in construction unemployment rates year-over-year, with the rest of the states experiencing an increase. However, it is worth noting that the construction unemployment rate remained below 10% in most states, except for three: Minnesota, New Jersey, and Rhode Island.

The construction employment sector continues to show resilience, with 191,000 more workers employed in December 2024 compared to the previous year. This indicates that while the construction unemployment rate has risen, employment levels overall are growing. Specifically, as of December 2024, the seasonally adjusted (SA) construction employment reached 701,000 higher than its pre-pandemic peak in 2019, reflecting an ongoing recovery.

Despite these positive figures, challenges persist, including high interest rates, rising labor costs, and uncertainty over material prices due to tariffs, which are slowing down new construction projects. Bernard Markstein, president and chief economist of Markstein Advisors, highlighted that while these factors are creating a drag on the industry, the construction job market remains steady. "Much depends on the future course of Federal Reserve monetary policy, efforts by the new administration to spur economic activity and the threat of price increases due to tariffs," he explained.

In terms of state-specific trends, Oklahoma posted the lowest NSA construction unemployment rate in December at just 1.7%, followed by Florida (2.4%) and New Hampshire (2.7%). These states were among the six with the lowest unemployment rates, showcasing strong regional construction employment. Florida and Oregon, for instance, recorded their second-lowest December unemployment rates, while Hawaii also had its third-lowest December rate on record.

On the other hand, Rhode Island recorded the highest December construction unemployment rate at 16.5%, which represents a 4% year-over-year increase. Similarly, other states such as Minnesota, New Jersey, and Maine saw notable year-over-year increases in their construction unemployment rates.

According to the analysis, 27 states had lower construction unemployment rates compared to December 2019, signaling overall improvement in the industry despite national challenges. However, with a looming uncertain economic landscape, it remains to be seen how these trends will evolve.

Key takeaways from the state-by-state analysis

Lowest December NSA construction unemployment rates‍

Oklahoma (1.7%), Florida (2.4%), New Hampshire (2.7%), Georgia, Hawaii, and Oregon (3.2%).

Highest December NSA construction unemployment rates‍

Rhode Island (16.5%), Minnesota and New Jersey (10.6%), Maine (9.1%), Illinois (9.0%).

State trends‍

27 states reported lower unemployment rates compared to December 2019, signaling some positive long-term trends in construction employment.

The report also noted that most states had a higher rate of construction unemployment compared to November 2024, with only six states showing improvement. However, the overall construction industry continues to grow, supported by older projects and a steady stream of new developments. The ABC remains focused on monitoring these trends and adjusting strategies to maintain industry stability in the coming year.

This detailed examination of construction unemployment offers valuable insights into the economic landscape, demonstrating that while challenges persist, the industry is adapting and evolving to meet the demands of a shifting market.

Originally reported by Floordaily.