ABC: All but 3 States Had Construction Unemployment Rates Below 10% in December 2024

The national December 2024 not seasonally adjusted construction unemployment rate was 5.2%, up 0.8% from December 2023, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. The analysis found that only six states had lower estimated construction unemployment rates over the same period and 44 states were higher. All but three states (Minnesota, New Jersey and Rhode Island) had construction unemployment rates below 10%.

National NSA payroll construction employment was 191,000 higher than December 2023. As of December 2024, SA payroll construction employment was 701,000, or 9.2%, above its pre-pandemic peak of 7.6 million.

The construction employment market is holding up relatively well compared to its pre-pandemic level. As of December 2024, 27 states had lower construction unemployment rates compared to December 2019 and 23 states had higher rates.

“High interest rates, rising labor costs and uncertainty about future materials prices due to tariffs are acting as a drag on new construction plans. Nonetheless, construction employment continues to grow as older projects move forward and some new projects break ground,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “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.”