The U.S. labor market once again showed resilience in June, adding 147,000 jobs, well above the projected 118,000. The unemployment rate edged down to 4.1%, defying expectations of an increase and signaling that while the post-COVID hiring boom has cooled, the labor market remains steady.
Construction and AEC Outlook
June’s construction gains marked one of the strongest showings across goods-producing sectors with 15,000 jobs added, up from just 4,000 in May. This growth was fueled largely by infrastructure and capital-funded projects, but that momentum stands in contrast to manufacturing, which shed 7,000 jobs, reflecting the continued drag of global trade tensions, cost volatility and supply chain uncertainty.
While healthcare (+39,000) and leisure/hospitality (+20,000) led overall job creation, construction’s steady rise signals confidence in long-term public investment. At the same time, declines in manufacturing and federal government employment, also down by 7,000 jobs, underscore how uneven the recovery remains across industries.
For AEC firms navigating tight labor markets and persistent cost pressures, sustainable progress depends on smarter delivery: attracting talent, streamlining processes and maximizing every worker-hour on site.
National Trends and Commentary
Major outlets agree that the June report was stronger than expected, but it doesn’t change the economic outlook dramatically. “We didn’t get the expected slowdown,” said Matt Egan on CNN News Central. Financial Times’ Rana Foroohar also told CNN the labor market “starts in a good place,” but high interest rates are here to stay, affecting housing and infrastructure financing. She added that the data “takes pressure off Jerome Powell to cut interest rates.”
Bloomberg and CNBC highlighted upward revisions to April and May (+16,000 combined), reinforcing the idea of steady but not overheated growth. MarketWatch flagged lingering uncertainty around trade and immigration. USA Today emphasized that, despite overall gains, private-sector hiring remains cautious as employers grapple with labor shortages, policy uncertainty and the lingering effects of pandemic-era disruption.
Why Design-Build Matters More Than Ever
For the construction industry, the current blend of caution and confidence means tight margins and staffing pressures are here to stay. Collaborative project delivery methods like design-build can help mitigate risks and create opportunities:
- Labor Efficiency, by Design: Skilled labor shortages aren’t going away. Design-build brings trades, engineers and contractors to the table earlier, cutting duplication and streamlining workflows to make the most of lean teams.
- More Budget Certainty in a High-Rate World: With capital costs up, Owners need predictability. Design-build’s early cost visibility and fewer change orders offer a clear advantage.
- Public Sector Momentum: Federal and state investments are driving growth in transportation, water/wastewater and civic projects, sectors where design-build is already delivering value, speed and results.
- Built-In Resilience: Post-COVID, organizations are rethinking delivery methods. Design-build’s collaborative nature, faster decisions and tighter alignment meets the moment with speed and adaptability.
The June jobs report doesn’t indicate a major shift, but it reinforces what AEC firms are already experiencing: a labor market that’s steady but tight, with persistent cost pressures and economic uncertainty.
In this environment, how projects are delivered matters. Design-build continues to offer a strategic advantage: bringing teams together earlier, improving efficiency and helping firms adapt to challenges in real time. As conditions remain complex, project delivery methods that reduce risk and increase certainty will be essential to keeping projects moving and communities growing.
