ConDig (05-Sept-25)  The US construction industry shed 7,000 jobs in August, marking the third straight month of workforce declines, according to an Associated Builders and Contractors (ABC) analysis of Bureau of Labor Statistics data released Friday.

Despite the monthly losses, overall construction employment remains 58,000 jobs higher than a year ago—a 0.7% increase. But hiring momentum has slowed significantly, with just 6,000 net new positions added since December.

Nonresidential construction accounted for much of the recent weakness. Employment in the segment fell by a net 1,200 jobs, as nonresidential building lost 3,300 positions and nonresidential specialty trades slipped by 200. Heavy and civil engineering was the exception, adding 2,300 jobs in August.

At the same time, the construction unemployment rate dropped to 3.2%, tying the lowest level on record. By comparison, the overall US unemployment rate ticked up to 4.3% last month from 4.2% in July.

“The construction industry has now lost jobs in each of the past three months,” said ABC chief economist Anirban Basu. “Every subsegment except for heavy and civil engineering lost jobs in August. Despite these job losses, construction labor shortages appear to be worsening as immigration policy weighs on the supply of workers.”

Basu noted that industry data has been “particularly downbeat” since March, with rising materials costs and shrinking spending squeezing contractors. Still, sentiment among builders remains relatively upbeat.

“Contractors remain optimistic about their sales over the next six months, according to ABC’s Construction Confidence Index,” Basu said. “While that may reflect expectations for interest rate cuts, there is no guarantee that lower federal funds rates will translate into cheaper borrowing costs given the current state of the bond market.”