Construction Employment Slips in February as Industry Sheds 11,000 Jobs
Key Highlights
-
Construction employment declined by 11,000 jobs in February, according to federal labor data
-
Heavy and civil engineering construction saw the steepest losses, shedding 6,500 positions during the month
-
Industry employment remains slightly higher year over year, with a gain of 42,000 jobs compared to February 2025
WASHINGTON, DC — The construction industry lost 11,000 jobs on net in February, according to an analysis of new data released by the US Bureau of Labor Statistics.
Despite the monthly decline, construction employment remains higher than it was a year ago. Industry payrolls have increased by 42,000 jobs over the past 12 months, representing a 0.5% gain year over year.
Nonresidential Construction Sees Mixed Results
Nonresidential construction employment fell by 3,800 positions in February, with job losses reported in two of the three major subsectors.
Heavy and civil engineering construction experienced the largest decline, losing 6,500 jobs during the month. Nonresidential specialty trade contractors also saw employment drop by 1,400 positions.
In contrast, the nonresidential building segment added 4,100 jobs, partially offsetting the losses elsewhere in the nonresidential sector.
Construction Unemployment Rate Reaches 6.9%
The construction unemployment rate stood at 6.9% in February. Across all industries, unemployment rose to 4.4%, which is 0.2 percentage points higher than the national rate recorded one year ago.
“Construction employment shrank again in February and has now declined in 8 of the past 11 months,” said ABC Chief Economist Anirban Basu. “Both the residential and nonresidential segments lost jobs for the month, adding to a recent string of downbeat industry data releases; construction spending has been in decline for several quarters, and ABC’s Construction Backlog Indicator fell to a four-year low in January. With the conflict in Iran adding to trade policy-related uncertainty and crude oil prices well above $80 per barrel, the industry’s outlook remains downbeat through the first few months of 2026.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.