ABC: Nearly Half of State Construction Unemployment Rates Dip Since Last Year

The national not seasonally adjusted construction unemployment rate in September 2024 was 3.7%, down 0.1% from the previous year, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data provided today by Associated Builders and Contractors.

The analysis also discovered that 24 states had reduced construction unemployment rates throughout the same period, four states were steady, and 22 states increased.

National NSA payroll construction employment increased by 230,000 from September of prior year. Since February 2022, seasonally adjusted construction employment has risen above its pre-pandemic peak of 7.6 million. As of September 2024, South African payroll construction employment stands at 8.3 million.

The construction employment market appears to be easing in comparison to pre-pandemic levels. As of September, 21 states had lower construction unemployment rates than in September 2019, while 27 had higher rates and two (Kentucky and Wisconsin) were unchanged.

“Construction employment continues to grow, reflecting the overall strength in the economy,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.

“Construction activity and employment will be aided by lower interest rates as the Federal Reserve eases its monetary stance. Continued federal infrastructure spending will be an added source for construction employment.”

Recent month-to-month fluctuations

In September, the anticipated construction unemployment rate climbed by 0.5% from August.

Only four states reported lower estimated construction jobless rates than in August. Meanwhile, 41 states reported greater rates, with five reporting the same rate.

High temperatures across the country, notably in the West, combined with heavy rain in the Southeast, contributed to higher construction unemployment rates in much of the country.

The Top 5 States

The five states that had the lowest estimated NSA construction unemployment rates in September were:

South Dakota had 1.1%,
New Hampshire had 1.4%,
Oklahoma had 1.5%, and
Florida and Mississippi tied at 2.0%.

All five states had the lowest September NSA projected construction unemployment rate on record.

In addition, South Dakota experienced the second highest year-over-year reduction in its rate (down 1.7%), trailing only Connecticut (down 1.8%).

The Bottom Five States

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

Montana, 6.0%
Minnesota has a 6.2% share,
followed by Illinois at 6.4% and
New Jersey at 6.9%.
Rhode Island, 11.3%

New Jersey experienced the highest monthly fall in its NSA estimated construction unemployment rate (down 0.5%) and the third largest year-over-year decline (down 1.5%) of any state.

[Read more about this topic on Abc.org]