Workforce
Construction Added 13K Jobs in March, But Economists See Tariff Trouble Ahead
ABC economist likened recently enacted tariffs as "the largest tax hike since 1968"
The construction industry boosted hiring by 17,000 positions in May, with nonresidential contractors leading the way with an overall net gain of 15,700 positions, according to the Bureau of Labor Statistics.
Construction experienced an overall estimated jobs gain of 13,000 in March, according to the Bureau of Labor Statistics' latest monthly report, but industry economists reacted with worry that tariffs announced April 2 by President Trump will stall industry employment growth in future months.
While first describing the latest monthly data as a "perfectly fine jobs report," Associated Builders and Contractors' economist Anirban Basu stated via press release that “March’s labor market data is a lesser concern in light of the sweeping tariffs announced on April 2. What amounts to the largest tax hike since 1968 will reduce construction activity due to rising input costs, shaken business confidence and potentially higher-for-longer interest rates."
Similarly, Ken Simonson, chief economist for Associated General Contractors of America, appreciated the positive jobs growth, noting that "Contractors added employees at a faster clip than other sectors in March, as pay for construction craft workers outpaced wages for production workers in the overall private sector."
“However," Simonson added, "as steep new tariffs and foreign countries’ retaliatory measures take effect, building costs will rise and projects will be put on hold, posing a threat to employment.”
Additionally, Basu noted construction's slowed pace of hiring to start the year, commenting, “With downward revisions to the January and February numbers, the industry added just 8,000 jobs per month during the first quarter of 2025. Construction employment is up just 1.8% since March 2024, the slowest year-over-year growth in four years."
The Job Numbers
Overall, construction employment in March totaled 8,313,000, seasonally adjusted, an increase of 13,000 from February, according to BLS.
Building contractors added 2,700 positions overall, the result of residential contractors hiring an estimated 3,100 new workers, while nonresidential building contractors reporting a decline of 400 positions.
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Meanwhile, specialty trade contractors added an estimated 6,400 jobs overall in March. However, it was an up-and-down month for specialty trades, with non-residential firms adding 19,300 jobs, and residential specialty contractors shedding 12,900 positions.
Rounding out the data, BLS reported that heavy and civil construction firms added an estimated 3,400 positions.
