> ## Content Index > Fetch the complete content index at: https://www.industrialbriefs.com/llms.txt > Use this file to discover other available public pages before exploring further. # Construction Unemployment Climbs as Industry Faces Cost Pressures - URL: https://www.industrialbriefs.com/construction-unemployment-cost-pressures/ - Published: 2026-09-07T19:30:26.000Z - Updated: 2026-09-07T19:30:26.000Z - Description: Construction unemployment rises to 4.7% in June amid increasing costs, impacting project viability. - Author: IndustrialBriefs - Tags: construction, policy, sustainability ![IB_KEY_FACTS:[{"stat":"4.7%","label":"National construction unemployment rate in June.","sublabel":"Up 1.3 percentage points from June 2025."},{"stat":"59,000 jobs","label":"Increase in construction payroll employment compared to June 2025.","sublabel":"14th consecutive month of year-over-year gains below 100,000 jobs."},{"stat":"8.3 million","label":"Seasonally adjusted construction employment.","sublabel":"Above pre-pandemic peak levels."}]](https://industrial-briefs.ghost.io/favicon.ico) National construction unemployment reached 4.7% in June, marking a significant uptick amidst a backdrop of rising labor and material costs. This trend poses immediate challenges for contractors and developers in the construction sector. **What Happened** The Associated Builders and Contractors (ABC) reported that the U.S. Bureau of Labor Statistics data shows a rise in the national non-seasonally adjusted construction unemployment rate to 4.7% in June, an increase of 1.3 percentage points from the same month last year. This development is noteworthy as it highlights the ongoing struggles within the industry, despite a 59,000 job increase in payroll employment compared to June 2025\. Seasonally adjusted employment figures show 8.3 million workers, maintaining levels above pre-pandemic peaks. The report also indicates that construction unemployment rates were lower than pre-pandemic levels in 34 states. However, 32 states saw higher unemployment rates compared to June 2019, with only Louisiana's rate remaining unchanged. Bernard Markstein, president and chief economist at Markstein Advisors, attributes the rising unemployment to various factors. Higher energy prices, labor costs, insurance premiums, skilled labor shortages, elevated interest rates, and tariffs on construction materials are all contributing to increased project costs, which in turn discourage new construction activity. Month-over-month, the national construction unemployment rate rose by 0.6 percentage points from May. Eleven states reported lower unemployment rates, while 38 states saw increases, with Oklahoma's rate unchanged. Notably, Alaska, Wyoming, and New Hampshire posted the lowest unemployment rates, while Connecticut and New Jersey had the highest. **What This Means for Your Business** For businesses in the architecture, engineering, construction, and manufacturing sectors, the current labor market conditions underscore the necessity for strategic planning and cost management. The rise in unemployment, coupled with escalating costs, can impact project timelines and budgets. Companies may need to explore innovative solutions to mitigate these pressures, such as adopting new technologies or refining procurement strategies. Moreover, the ongoing skilled labor shortages highlight the importance of investing in workforce development and training programs. Businesses that proactively address these challenges may gain a competitive edge by ensuring they have the skilled personnel needed to meet project demands efficiently. Compliance with federal regulations such as CMMC and NIST remains critical, especially as companies navigate these economic challenges. Ensuring adherence to these standards can safeguard against potential risks and enhance the trust of government and private sector clients. **What US Operators Should Watch** Operators should closely monitor federal funding opportunities that may arise to support workforce development and infrastructure projects. Staying informed about changes in tariffs and energy prices can also provide insights into potential cost fluctuations. Additionally, businesses should track any upcoming regulatory deadlines related to cybersecurity and compliance, as these can significantly impact operational readiness and contract eligibility. Keeping an eye on economic indicators and labor market trends will be crucial for strategic planning and maintaining competitive positioning in the industry. --- *Source:* [*For Construction Pros*](https://www.forconstructionpros.com/business/labor-workforce-development/article/22971699/associated-builders-and-contractors-inc-abc-abc-construction-unemployment-rate-rises-to-47-in-june?ref=industrialbriefs.com)*.* [*Read the original story ->*](https://www.forconstructionpros.com/business/labor-workforce-development/article/22971699/associated-builders-and-contractors-inc-abc-abc-construction-unemployment-rate-rises-to-47-in-june?ref=industrialbriefs.com)