ABC: Every State Had Construction Unemployment Rates Below 10% in September

WASHINGTON, Dec. 19-The national September 2025 not seasonally adjusted construction unemployment rate was 3.8%, a 0.1% increase from September 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. The analysis found that just over half of states (26) had lower estimated construction unemployment rates over the same period, 21 had higher rates and three states (Alaska, California and Texas) had the same rates. All states had construction unemployment rates below 10%.

Following the end of the longest government shutdown on record (43 days), government data agencies are once more collecting and releasing important economic data. Note that, as a result of the shutdown, no October labor data will be made available as the BLS could not collect the necessary data.

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National NSA payroll construction employment was 33,000 higher than September 2024, and seasonally adjusted payroll construction employment was 8.3 million, or 9.1% above its pre-pandemic peak of 7.6 million. However, construction employment increases are slowing; this was the third month in a row that the year-over-year gain was under 100,000 after over four years of six-digit year-over-year gains.

Estimated state construction unemployment rates were lower than their pre-pandemic level in just over 40% of states. As of September 2025, 21 states had lower construction unemployment rates compared to September 2019, while 27 states had higher rates and two states (Arkansas and Washington) had the same rate.

"Higher building materials costs due to tariffs, higher insurance costs and rising labor costs along with a shortage of skilled construction workers are weighing upon the construction industry," said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. "On the positive side, a somewhat easier policy stance by the Federal Reserve has resulted in lower interest rates. Further declines in interest rates are likely in 2026."

Recent Month-to-Month Fluctuations

In September, the national NSA construction unemployment rate jumped 0.6% from August. Among the states, only two (Iowa and Utah) had lower rates, 46 posted higher rates and two states (Hawaii and Ohio) had the same estimated construction unemployment rates as in August.

The Top States

The six states with the lowest estimated NSA construction unemployment rates for September were:

1. Oklahoma, 1.4%
2. Hawaii, 1.7%
3. New Hampshire, 2%
4. Georgia, Indiana and Tennessee (tie), 2.2%

Oklahoma, Hawaii and Indiana each notched their lowest September NSA estimated construction unemployment rate on record. Hawaii also had the largest drop in its year-over-year rate (down 1.2%) along with Illinois, Kentucky and Louisiana. Note that Hawaii's unemployment rate is for construction plus mining and logging. Tennessee had its second-lowest September rate on record behind the 2.1% the state achieved in September of 2021 and 2022.

The Bottom States

The five states with the highest September estimated NSA construction unemployment rates were:

1. Minnesota and Montana (tie), 5.9%
2. Connecticut, 6.7%
3. Rhode Island, 7.5%
4. New Jersey, 9.4%

Rhode Island recorded its lowest September rate since its September 2021 rate of 7.3%.

Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states.To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.