WASHINGTON — The U.S. not seasonally adjusted (NSA) construction unemployment rate for March 2025 stood at 5.4%, unchanged from March 2024, according to a detailed state-by-state analysis of Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC).

The analysis revealed that 19 states recorded lower estimated construction unemployment rates year-over-year, while 25 states saw increases and six remained the same. Only four states — Connecticut, Maine, New Jersey, and Rhode Island — reported construction unemployment rates above 10%.

Nationally, NSA payroll construction employment was 140,000 jobs higher than in March 2024. As of March 2025, seasonally adjusted (SA) payroll construction employment was 703,000 jobs (or 9.2%) above its pre-pandemic peak of 7.6 million, reflecting the industry’s continued post-pandemic recovery.

Many states also reported stronger construction labor markets compared to pre-pandemic years. Thirty states had lower construction unemployment rates compared to March 2019, while 17 had higher rates, and Alabama, Florida, and Minnesota held steady with their 2019 levels.

“Although March state construction unemployment rates show a relatively healthy level of construction employment, rising uncertainty about the business climate over the remainder of this year and 2026 is weighing on contractor and developer plans,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Confusion surrounding tariffs and their impact on building materials prices has increased the level of uncertainty. This is on top of continued elevated interest rates and higher labor costs. These concerns are stoking fears of a major economic slowdown and the possibility of a recession. For now, most of the construction industry is slowing or temporarily halting hiring workers as they seek greater clarity as to where the economy is headed.”

Between February and March, the national NSA construction unemployment rate fell by 1.8%, thanks largely to improved weather conditions across much of the U.S. All but two states — Louisiana and Mississippi — saw lower estimated construction unemployment compared to February.

States with the Lowest Construction Unemployment Rates (March 2025):

• South Dakota: 1.9% (lowest March NSA rate on record)
• Oklahoma: 2.3% (lowest on record)
• New Hampshire: 2.8% (second-lowest March rate on record)
• West Virginia: 3.1% (lowest on record)
• Florida: 3.2% (third-lowest March rate, behind 2023 and 2024)

States with the Highest Construction Unemployment Rates:

• Minnesota: 9.8%
• Connecticut: 10.0%
• Maine: 10.2%
• New Jersey: 12.2%
• Rhode Island: 16.0%

Interestingly, Rhode Island, Connecticut, and Minnesota posted some of the largest monthly improvements in their construction unemployment rates, trailing only Montana.

For a full breakdown of the report, visit bls.gov/news. To explore ABC’s accompanying graphs and data visualizations, visit abc.org.

Originally reported by Dakota Smith in WWN.