The Bureau of Labor Statistics’ (BLS) long-delayed September report finally arrived on November 20, offering the first meaningful labor-market update in more than six weeks. Despite the disruption caused by the federal government shutdown, the data provides a relatively steady, though not spectacular, picture of the U.S. economy heading into year’s end.
For the AEC community, the headline is simply “stability holds.” There are no major swings in construction employment, no sudden signs of contraction and no unexpected pressures on the industry’s labor pipeline. In a year defined by uncertainty, that alone is worth noting.
A Slow but Steady Labor Market
According to the BLS, total nonfarm payroll employment increased by 119,000 in September, reflecting modest growth across the economy. The unemployment rate edged up to 4.4%, a slight change but not one that signals significant weakness. Wage growth remained moderate, rising 0.2% for the month and 3.8% over the past year.
These figures suggest a labor market that is cooling gradually without tipping into instability, a dynamic that helps maintain predictable workforce conditions for long-term construction projects.
Construction Employment: Holding Firm
Construction employment showed little to no movement in September, consistent with BLS sector data. While other sectors, particularly health care, food services and social assistance, posted noticeable gains, construction’s steadiness is consistent with the overall trend observed since spring.
Importantly, September’s data does not indicate broad layoffs or a decline in construction activity. Instead, the sector appears to be maintaining its footing as firms continue to balance project backlogs, cost pressures and long-term planning.
This period of relative steadiness is meaningful for Owners and design-build teams who depend on workforce continuity to keep projects moving efficiently and predictably.
Industry Sectors to Watch
- Transportation and Warehousing: Employment fell by 25,000, with declines in warehousing and courier services. While not a construction indicator on its own, this could reflect shifting logistics demands that influence certain capital planning decisions. Employment fell by 25,000, with declines in warehousing and courier services. While not a construction indicator on its own, this could reflect shifting logistics demands that influence certain capital planning decisions.
- Federal Government: Employment declined by 3,000 and is down 97,000 since January. While this does not directly equate to project spending, federal workforce dynamics combined with shutdown-related disruptions may affect timelines for certain federally-funded initiatives.
- Health and Social Infrastructure: Strong hiring in health care (+43,000) and social assistance (+14,000) aligns with sustained national demand for medical, community and supportive-service facilities. These sectors have been significant drivers of design-build work and are worth continued attention.
Data Caveat: The Missing October Report
Because of the federal government shutdown, the BLS will not publish an October Employment Situation Report, as confirmed by PBS NewsHour. Instead, October establishment data will be released alongside November’s report on December 16.
This creates a temporary information gap but also means next month’s release may offer a clearer sense of momentum as the industry prepares for 2026.
What This Means for Design-Build
The September report does not deliver major surprises, and that’s precisely the value for the design-build sector. A labor market characterized by steadiness rather than volatility supports reliable hiring, scheduling and cost forecasting. It also suggests the fundamentals underlying construction demand remain intact, even with pockets of weakness in other industries.
With no dramatic shifts in construction employment and a broader economy showing gradual cooling rather than contraction, design-build teams can continue to plan and deliver work with confidence while keeping an eye on December’s combined report for fuller context.
