Construction's December Job Declines of 11K Workers Portend Slow Start to 2026
Overall the industry added just 15,000 positions over the course of 2025
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 employment declined by an estimated 11,000 workers in December, resulting in an annual gain of just 15,000 workers for 2025, according to the Bureau of Labor Statistics' monthly jobs report.
Heavy and civil engineering contractors comprised the lone sector adding jobs in December, with a monthly gain of 2,300 positions.
Meanwhile, specialty trade contractors registered a decline of 7,800 positions overall. That number was comprised of a decline of 8,900 jobs among nonresidential specialty trade firms, and a gain of 1,100 positions among residential specialty trade firms.
Building contractors shed an estimated 5,400 positions overall, with firms focused primarily in residential construction shedding 4,200 jobs, and nonresidential builders eliminating 1,200 positions.
The overall annual gain of just 15,000 workers was historically notable, with Associated Builders and Contractors Chief Economist Anirban Basu commenting in a press release, "Excluding the first year of the COVID-19 pandemic, that’s the worst 12-month performance since 2011, when the construction industry was still spiraling from the Great Recession."
Basu also noted specific concern over December job losses in both the nonresidential building and nonresidential specialty trade categories, remarking, "While the nonresidential side of the industry performed significantly better over the past year, even that segment’s momentum has started to wane. Nonresidential specialty trade contractors, demand for which led the industry in 2025, posted its worst month in nearly four years, losing 8,900 jobs in December."
Ken Simonson, chief economist for Associated General Contractors of America, also noted the nonresidential sector's late-2025 jobs decline, citing economic policy shifts during the past year.
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“Nonresidential construction employment expanded modestly in 2025 but was held back by unwillingness of many owners to commit to projects in the light of ongoing policy turmoil,” Simonson said in a press release. “Based on our recent survey, it appears 2026 will also present only limited opportunities for growth.”
ABC's Basu echoed those remarks, stating, "Recent declines in backlog, ongoing declines in construction spending and December’s job losses suggest it could be a difficult start to 2026 for the industry.”
Still, Jeffrey D. Shoaf, AGC of America's chief executive officer, commented that, “Even though they are less enthusiastic about demand for most types of construction work this year, most firms expect to have enough work to expand their headcount. This assumes they will be able to find enough qualified workers to hire amid chronic federal underinvestment in construction workforce development.”
