According to the latest report from the U.S. Bureau of Labor Statistics, the U.S. economy added 172,000 jobs in May, exceeding many economists’ expectations, while the unemployment rate stayed at 4.3%. The report also revised March and April upward, adding 93,000 jobs to previous totals and contributing to a three-month trend of at least 100,000 new jobs per month.
Construction added 17,000 jobs in May. However, BLS classified construction employment as showing “little change” during the month, reflecting the modest increase in an industry with more than 8.3 million workers.
A closer look at the construction figures highlights sector differences. Most of May’s growth came from specialty trade contractors, while other sectors saw little or no change.
Specialty trade contractors added 14,000 jobs during the month, including 11,400 positions among nonresidential specialty trade contractors and 2,600 among residential specialty trade contractors. Heavy and civil engineering construction added another 2,600 jobs.
Overall, construction employment remained unchanged. Nonresidential building construction added 1,700 jobs, offset by a 1,700-job loss in residential building construction, highlighting divergent trends between the two sectors.
Different Trends Beneath the Headline
The differences between residential and nonresidential employment are more pronounced when viewed across the past year.
Total construction employment increased by 68,000 jobs between May 2025 and May 2026. During that period:
- Nonresidential specialty trade contractors added 57,400 jobs.
- Heavy and civil engineering construction added 25,900 jobs.
- Nonresidential building construction added 18,200 jobs.
- Residential specialty trade contractors lost 25,100 jobs.
- Residential building construction lost 8,200 jobs.
Together, the three nonresidential construction categories added about 101,500 jobs over the year. In contrast, the two residential categories lost about 33,300 jobs. This comparison highlights the distinct paths of nonresidential and residential sectors.
Recent construction spending data shows similarly uneven conditions across the industry. According to the U.S. Census Bureau’s April 2026 release, total construction spending rose 0.4% in April. Residential spending accounted for most of the increase, while nonresidential spending rose just 0.1%. Within nonresidential construction, public-sector spending increased but private-sector spending declined, showing mixed activity across market segments.
The employment report does not explain what is driving the difference between residential and nonresidential construction. However, it shows the industry’s sectors are not following the same employment trajectory.
Construction Wages Continue to Rise
Average hourly earnings in construction increased to $41.20 in May, up from $39.47 one year earlier. That represents an increase of approximately 4.4%, compared with a 3.4% year-over-year increase in average hourly earnings across the private sector.
May’s report shows steady overall construction employment, with year-over-year gains focused in nonresidential sectors, despite headlines highlighting stronger-than-expected national job growth.
The national employment report for June 2026 will be released on July 2.
