Economics
Construction Unemployment Rate at 5% in December
Minnesota experienced the highest construction unemployment rate among the states.
The construction unemployment rate, not seasonally adjusted, reached 5% in December, according to data recently released by Bureau of Labor Statistics. Minnesota had the highest rate, followed by Rhode Island and Connecticut. Hawaii, Oklahoma and Colorado experienced the lowest rates. While the national figure marks a 0.2% decline since December 2024, the construction unemployment rate increased on a monthly basis, up 0.9% since November.
“The construction industry continues to contend with weaker demand from the headwinds of tariffs and supply disruptions pushing building materials prices up, increasing insurance costs," Bernard Markstein, president and chief economist of Markstein Advisors, who analyzed this data for Associated Builders and Contractors, said in a statement. Additionally, “an uptick in immigration enforcement [is] contributing to a shortage of skilled construction workers, which has added to pressure to raise wages and salaries.”
When compared with the numbers released in December 2024, 30 states experienced lower construction unemployment rates as of December 2025, while 17 states had higher rates and three remained the same. Since November 2025, however, only three states saw lower unemployment rates with the rates of 44 states increasing and three remaining the same.
Looking ahead, Markstein noted, interest rate cuts and advances in artificial intelligence could help contractors offset high costs. “Further declines in interest rates are likely this year,” he said. “Adoption of software and equipment powered by artificial intelligence may help some companies to control costs and reap greater efficiency from their existing workforce.”
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