KEY POINTS
-
U.S. nonfarm payrolls rose by 172,000 in May while the unemployment rate held at 4.3%, the U.S. Bureau of Labor Statistics said today.
-
Construction employment showed little change in May, reinforcing a picture of selective hiring as contractors weigh backlog, financing conditions, and costs.
-
Hiring gains were reported in health care, local government and leisure and hospitality, while financials reported job losses.
The U.S. labor market grew in May, but construction did not join the month’s biggest hiring gains.
Total nonfarm payroll employment increased by 172,000 in May, and the unemployment rate was unchanged at 4.3%, according to the U.S. Bureau of Labor Statistics Employment Situation report, released today.
Employment in construction showed little change over the month. That flat reading does not signal a collapse in labor demand. It does suggest contractors remain cautious, adding workers selectively rather than expanding payrolls aggressively.
Other sectors that showed little employment movement in May employment include manufacturing, wholesale trade, retail trade, information, professional and business services.
Construction Hiring Stays Flat as Broader Payrolls Advance
The May report showed job gains concentrated in leisure and hospitality, local government and health care. Leisure and hospitality added 70,000 jobs, local government added 55,000, and health care added 35,000. Financial activities lost 22,000 jobs.
[Read The Two Decisions that Will Shape Construction Business through 2030]
Construction was among the major industries with little change, the BLS data showed. A flat month does not mean projects are stopping, but it does suggest firms are still weighing backlog, financing conditions, and labor cost pressure before hiring more intensely.
ConstructConnect’s May 2026 Construction Economy Snapshot had already shown a modest increase in April construction employment, led by nonresidential specialty trades and nonresidential building.
Unemployment Holds Steady, but Friction Remains
The US unemployment rate has remained in a narrow range of 4.3% to 4.5% since July 2025. In May, the number of unemployed was essentially unchanged at 7.3 million.
But the BLS report also showed long-term unemployment was up by 524,000 from a year earlier, even though it was little changed month-to-month. That suggests the labor market is steady, but not without friction.
Stay Connected
Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next.
About ConstructConnect
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com
