Despite the current economic uncertainty, construction unemployment numbers remain low, according to a report by the U.S. Bureau of Labor Statistics. The non-seasonally adjusted (NSA) unemployment rate was 5.4% in March, the same rate recorded in March 2024.

Bernard Markstein, president and chief economist of Markstein Advisors, who analyzed the report for Associated Builders and Contractors (ABC), remains cautious about the construction economy going forward. “Although March state construction unemployment rates show a relatively healthy level of construction employment, rising uncertainty about the business climate over the remainder of this year and 2026 is weighing on contractor and developer plans,” he said in a press release by ABC.

Broken out by state, the report shows 19 states reported lower construction unemployment rates while 25 had higher rates, and six showed no change. Among the lowest were in South Dakota, Oklahoma and New Hampshire, at 1.9%, 2.3% and 2.8%, respectively. The highest rates were in Rhode Island, at 16%, and New Jersey, at 12.2%.

“Confusion surrounding tariffs and their impact on building materials prices has increased the level of uncertainty. This is on top of continued elevated interest rates and higher labor costs,” said Markstein. “These concerns are stoking fears of a major economic slowdown and the possibility of a recession. For now, most of the construction industry is slowing or temporarily halting hiring workers as they seek greater clarity as to where the economy is headed.”