National Construction Jobs Decline in December

Construction Job Losses Mount

National construction employers cut 11,000 jobs in December, capping a sluggish year in which net sector employment grew by just 14,000 positions, according to the latest Bureau of Labor Statistics report. Nonresidential construction was hit hardest, shedding a combined 10,100 jobs, led by declines in specialty trades and building construction, per Bisnow.

Labor Force Dynamics

Despite lower employment, the construction unemployment rate held steady at 5% in December. Analysts attribute this to a shrinking labor pool, with policy impacts—including immigration—likely affecting workforce size. Associated Builders and Contractors’ chief economist noted that fewer available workers kept the rate from rising even as job numbers dropped.

Pockets of Strength, Widespread Weakness

The heavy and civil engineering segment gained 2,300 jobs amid broader losses. Some regions saw construction job growth thanks to strong demand for data centers and infrastructure, but many markets still experienced declines. Industry experts cited uncertainty over tariffs and shifting policies as factors causing firms to slow hiring and trim staff.

Broader Economic Context

Construction’s weak job gains reflected wider softness in the US job market for 2025. The national economy added an average of 49,000 jobs per month—down sharply from 168,000 in 2024. Weaker labor data has also fueled expectations of monetary policy shifts, with some policymakers citing cooling job growth as a potential justification for rate cuts. While overall unemployment fell slightly, payroll growth did not meet investor expectations, and revised data showed earlier months were weaker than first reported. Economists described 2025 as a ‘hiring recession,’ with growth outpacing actual job creation across the economy, including national construction.