The U.S. labor market slowed in June, with total nonfarm payroll employment increasing by 57,000 jobs and the unemployment rate edging down to 4.2%, according to the latest report from the U.S. Bureau of Labor Statistics. The headline numbers point to a labor market that is still expanding but at a more measured pace than earlier in the year.
BLS also revised April and May job gains downward by a combined 74,000 jobs, lowering April from 179,000 to 148,000 and May from 172,000 to 129,000. Those revisions soften the picture of spring hiring and reinforce the sense that employers are moving more cautiously as the economy navigates elevated costs, interest rate uncertainty and uneven demand across sectors.
ABC News described June hiring as weaker than expected, noting the report showed a “wobbly labor market” even as unemployment remained low by historical standards. The outlet also reported that professional and business services led job gains, while health care continued adding jobs at a slower pace.
For design-build teams, the construction details tell a more useful story than the topline number alone, though the gains themselves remain relatively modest.
Construction employment increased by 11,000 jobs in June, reaching 8.3 million on a seasonally adjusted basis. While positive, that increase is not especially strong by historical standards. Within the sector, the gains were concentrated in nonresidential work. Nonresidential specialty trade contractors added 14,100 jobs, nonresidential building construction added 3,200 and heavy and civil engineering construction added 2,600. Residential construction moved in the opposite direction, with residential building construction losing 2,900 jobs and residential specialty trade contractors losing 5,700.
The split reflects a broader pattern of uneven activity, with nonresidential and infrastructure-related work continuing to provide support while residential construction faces more pressure. Even so, the overall pace of growth suggests cautious expansion rather than acceleration. The latest Census construction spending report showed total construction spending rising 0.1% in May, though spending was 1.5% below May 2025 levels. Private nonresidential construction spending slipped 0.3% for the month, while public construction spending rose 0.5%.
For Owners and project teams, this combination of modest job growth, uneven spending and persistent labor demand reinforces the importance of early planning. Labor availability remains a defining project delivery issue, particularly in specialized trades and fast-moving nonresidential markets. Associated Builders and Contractors has estimated the construction industry will need to attract 349,000 net new workers in 2026 to meet demand, even with more modest construction spending growth assumptions.
Average hourly earnings for all private-sector workers rose 0.3% in June to $37.64 and were up 3.5% over the year, according to BLS. For construction, continued wage pressure affects estimating, procurement, scheduling and the ability to maintain momentum once projects begin.
The June report suggests a cooler, more selective market, but it does not indicate a massive slowdown. Construction is still adding jobs, but the strongest gains are not evenly distributed across the sector. Nonresidential specialty trades remain a bright spot, while residential categories continue to show weakness.
For design-build teams, this isn’t about overreacting to one report so much as paying attention to what’s actually happening on the ground. Labor is still tight in the trades that matter most to nonresidential work, even as overall hiring slows. In this environment, workforce planning is increasingly being addressed alongside project planning from the start.
