March Construction Employment Up Slightly Year Over Year, Industry Warns of Tariff Effects

The construction industry added 13,000 jobs on net in March, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has risen by a mere 143,000 jobs, an increase of 1.8%. 

Nonresidential construction employment increased by 22,300 positions on net in March, with growth in 2 of the 3 subsegments. Nonresidential specialty trade added the most jobs, with a monthly increase of 19,300 positions, while heavy and civil engineering added 3,400 jobs. The nonresidential building subsegment lost 400 positions.

The construction unemployment rate decreased to 5.4% in March and is unchanged from one year ago. Unemployment across all industries rose from 4.1% in February to 4.2% last month.

“At first glance, this is a perfectly fine jobs report for the construction industry,” said Anirban Basu, ABC chief economist. “The details, however, give cause for concern. 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.

“March’s labor market data is a lesser concern in light of the sweeping tariffs announced on April 2,” Basu said. “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. While contractors were sanguine about the outlook as of last month, according to ABC’s Construction Confidence Index, industry expectations are likely to worsen in the coming months.”