AGC: Construction Employment Falls By 11,000 As Firms Worry About Demand Levels

March 6, 2026 — Construction employment declined by 11,000 jobs in February, with decreases in both residential and nonresidential segments, according to an analysis of new government data released by the Associated General Contractors of America (AGC). The decline follows stronger hiring in January than previously reported and suggests contractors are becoming more cautious about adding workers amid uncertainty about materials prices and demand for projects.

“Contractors may be more reluctant to add workers amid uncertainty about how much they will pay for construction materials and demand for certain types of construction projects,” said Macrina Wilkins, the association’s director of market insights. “But even with the monthly drop, construction employment has grown at a faster rate during the past year than the broader economy.”

Construction employment totaled 8,309,000, seasonally adjusted, in February, a loss of 11,000 from January. Over the past 12 months, the industry has added 42,000 jobs, a gain of 0.5%, outpacing the 0.1% increase in total nonfarm payroll employment.

The contraction mostly occurred in residential construction. Residential construction shed 7,100 jobs for the month, as a decline of 9,500 positions among residential specialty contractors more than offset a gain of 2,400 jobs among residential building contractors. Nonresidential construction employment slipped by 3,800 jobs in February. Within that category, employment among nonresidential building contractors increased by 4,100 positions. Nonresidential specialty trade contractors shed 1,400 jobs. Employment in heavy and civil engineering construction declined by 6,500 jobs for the month.

Average hourly earnings for production and nonsupervisory employees in construction — including most on-site craft workers and many office staff — rose to $38.52 in February, an increase of 5.1% over the past year.

AGC officials said uncertainty — about materials prices and levels of demand for projects — likely prompted some firms to pause hiring in February. They said federal officials could help ease that uncertainty by passing a new surface transportation bill before the current law expires at the end of September. 

“Congress can send a clear signal about construction demand by passing a new highway and transit bill before the current measure expires,” said Jeffrey D. Shoaf, the association’s CEO. “As the single largest federal construction measure, the transportation bill is a significant driver of construction demand across the country.”

View the construction employment data.

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