Construction employment dropped by 11,000 jobs in February, per federal labor data. The decline marks the eighth consecutive monthly loss in the past 11 months, according to the US Bureau of Labor Statistics. Heavy and civil engineering construction saw the sharpest decline, shedding 6,500 positions. Nonresidential specialty trade contractors also lost 1,400 jobs during the month.
Nonresidential construction employment fell by 3,800 positions overall. However, the nonresidential building segment added 4,100 jobs, slightly offsetting losses elsewhere. Year-over-year, the sector remains 42,000 jobs ahead of February 2025 levels, a 0.5% increase. The construction unemployment rate in February hit 6.9%, higher than the 4.4% national average for all industries.
Residential and nonresidential segments both reported job losses in February. The decline follows a string of weak data releases, including a drop in construction spending and a four-year low for the Construction Backlog Indicator in January. Anirban Basu, chief economist at the Associated Builders and Contractors, noted the sector’s “downbeat outlook” amid trade policy uncertainty and rising oil prices.
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The report highlights persistent challenges for the field. Nonresidential construction, which includes offices, schools, and hospitals, saw two of its three subsectors lose jobs. Heavy and civil engineering projects, such as highways and bridges, accounted for nearly 60% of the total monthly decline. Residential construction, meanwhile, contributed smaller losses.
Industry analysts point to broader economic factors. Basu cited the Iran conflict and crude oil prices above $80 per barrel as headwinds. The Construction Backlog Indicator, which measures unfulfilled project demand, fell to its lowest level since 2022. The report does not predict a quick turnaround, with uncertainty lingering over policy changes and material costs.
Employment trends vary by region. Some areas reported localized gains, but these were overshadowed by national declines. The Bureau of Labor Statistics data does not break down regional performance in detail. Unemployment rates for construction workers remain above the overall national average, reflecting field-specific struggles.
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The sector’s year-over-year growth of 42,000 jobs masks monthly volatility. While 2025 saw a slight rebound, recent months have shown a reversal. The 0.5% annual increase is modest, and the Bureau of Labor Statistics notes no significant shifts in long-term trends. Employers continue to balance project demands with labor availability.
For further analysis, the Construction Backlog Indicator and Confidence Index are available here. These tools track industry sentiment and spending patterns. The data highlights ongoing challenges for construction firms managing economic and geopolitical headwinds.
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