Construction employment in the United States decreased by 11,000 jobs in December, according to new government data analyzed by the Associated General Contractors of America. The decline included modest reductions in both residential and nonresidential sectors. Association officials said these figures are consistent with contractor concerns highlighted in their recently released 2026 Construction Hiring & Business Outlook.
“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,” said Ken Simonson, the association’s chief economist. “Based on our recent survey, it appears 2026 will also present only limited opportunities for growth.”
Total construction employment reached 8,303,000 on a seasonally adjusted basis in December, marking an 11,000-job decrease from November. Over the past year, headcount rose by 14,000 jobs or 0.2 percent—slightly below the overall nonfarm payroll employment growth rate of 0.4 percent. November’s figures were revised downward, indicating weaker labor market conditions than previously estimated.
Within nonresidential construction, firms cut 7,800 jobs during December. Nonresidential specialty trade contractors lost 8,900 positions and nonresidential building contractors lost 1,200 jobs. Heavy and civil engineering construction was the only segment to add workers with a gain of 2,300 jobs for the month. Residential construction saw a net loss of 3,100 jobs; this included a drop of 4,200 positions in residential building that was partially offset by an increase of 1,100 among residential specialty trade contractors.
Average hourly earnings for production and nonsupervisory employees—including most onsite craft workers and many office staff—increased by 4.5 percent over the year to $38.08 per hour. This outpaced the overall private sector’s wage growth for similar workers at 3.6 percent. The unemployment rate among those with recent construction experience rose to 5.0 percent in December and is now higher than the overall nonfarm rate of 4.1 percent (not seasonally adjusted).
The association reported that most firms have “dampened” expectations for market segments in 2026 except for data centers, power projects, and water & sewer facilities based on findings from its Construction Hiring & Business Outlook report published with Sage yesterday. However, despite tempered optimism about demand across most types of work this year, most companies still plan to expand their workforce if they can recruit enough qualified candidates amid ongoing labor shortages.
“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,” said Jeffrey D. Shoaf, the association’s chief executive officer. “This assumes they will be able to find enough qualified workers to hire amid chronic federal underinvestment in construction workforce development.”
The Associated General Contractors of America Nevada Chapter supports its members through advocacy efforts and professional development while promoting safety and ethical standards within the industry as described on its official website. The chapter also recognizes excellence through awards such as the PINNACLE Awards and collaborates with educational institutions to foster workforce development initiatives.
