Construction Job Openings Fall as Industry Faces Uncertainty, But Unemployment Stays Low in Most States

The U.S. construction industry saw a drop in job openings in March 2025, according to new data released by the Bureau of Labor Statistics and analyzed by Associated Builders and Contractors (ABC). At the same time, construction unemployment remained relatively low across most of the country, with only four states reporting rates above 10%.

Job Openings Drop by 38,000

On the last day of March, the construction sector had 248,000 unfilled positions — down 38,000 from February and 90,000 lower than the same time last year. ABC Chief Economist Anirban Basu pointed to the data as a sign of slowing demand for labor in the industry.

Hiring activity was particularly weak, with 302,000 hires during the month, representing just 3.6% of total industry employment. That is the lowest hiring rate ever recorded for the sector. Voluntary quits and layoffs were also low, suggesting minimal labor force movement.

Despite the slowdown, most contractors surveyed in ABC’s March Construction Confidence Index said they still expect to increase staffing over the next six months. However, factors such as tariffs and economic uncertainty may temper those expectations.

Unemployment Rates Hold Steady in Most States

In a separate state-by-state analysis of the BLS data, ABC reported a national construction unemployment rate of 5.4% (not seasonally adjusted) for March, the same as a year ago. Construction employment increased nationally, with 140,000 more jobs than in March 2024. Seasonally adjusted payroll construction employment was up 9.2% from its pre-pandemic peak.

Most states reported relatively low construction unemployment. Only four states — Connecticut, Maine, New Jersey and Rhode Island — had rates above 10%. Rhode Island had the highest at 16%.

State-Level Highlights

Lowest construction unemployment rates in March:

• South Dakota: 1.9% (record low)
• Oklahoma: 2.3%
• New Hampshire: 2.8%
• West Virginia: 3.1%
• Florida: 3.2%

South Dakota, Oklahoma and West Virginia reported their lowest March construction unemployment rates on record. Florida’s rate was the third lowest on record for March.

Highest construction unemployment rates in March:

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

Month-to-month, nearly every state saw a decrease in construction unemployment from February to March, thanks in part to improved weather conditions. Only Louisiana and Mississippi reported increases.

Outlook Remains Uncertain

Despite generally strong employment levels, the construction industry is contending with rising costs, continued high interest rates and growing concerns about tariffs. These challenges are contributing to uncertainty among contractors and developers, potentially impacting hiring plans in the months ahead.