September’s jobs report highlights a divide between a slowing national labor market and continued demand for skilled workers in nonresidential construction.
U.S. hiring slowed sharply in September, but the construction industry continued to add workers, particularly in nonresidential specialty trades.
Employers added just 29,000 jobs last month, according to the latest U.S. Bureau of Labor Statistics (BLS) jobs report, well below the approximately 90,000 economists had expected. Construction, meanwhile, added 11,000 jobs overall, even as employment gains and losses varied considerably across different parts of the sector.
The contrast is notable for an industry that has spent years navigating skilled labor shortages. Even as hiring cools across much of the economy, September’s numbers suggest the pressure for workers on nonresidential projects has not disappeared.
A Broader Labor Market Slowdown
September’s 29,000-job gain was down sharply from August’s revised increase of 133,000. The unemployment rate ticked up from 4.1% to 4.2%, although BLS noted it has remained within a narrow range of 4.1% to 4.3% since March.
Revisions to previous months also weakened the overall picture. July payroll growth was revised from a gain of 21,000 to a loss of 10,000 jobs, while August was revised down by 29,000. Combined, employment gains for July and August were 60,000 lower than previously reported.
The slowdown was spread across several parts of the economy. Health care continued to add jobs, though at about half its average monthly pace over the previous year. Information lost 10,000 jobs, professional and business services lost 9,000, financial activities lost 7,000 and government employment declined by 17,000.
The losses in information and financial activities also come as both sectors remain among the economy’s earlier adopters of artificial intelligence. A 2026 Census Bureau study found particularly high AI adoption among large firms in information, professional services and finance, with broader AI deployment associated with employment reductions.
Coverage from CNN and NBC News also pointed to a labor market characterized by considerably slower hiring even as unemployment remains relatively low.
Wage growth is cooling as well. Average hourly earnings increased just 0.1% in September and 3.0% over the past 12 months.
Construction Tells a Different Story
The construction numbers show an industry moving differently from much of the broader economy and significant differences within construction itself.
Nonresidential specialty trade contractors added 12,300 jobs in September, a gain larger than construction’s overall increase of 11,000 because employment declined elsewhere in the sector. Residential specialty trades lost 7,900 jobs, offsetting part of the nonresidential gain. Nonresidential building construction added another 1,200 jobs, heavy and civil engineering construction gained 2,600 and residential building construction added 3,000.
The longer view reinforces the divide across the industry. Since September 2025, employment among nonresidential specialty trade contractors has grown by approximately 85,000 jobs. Residential specialty trade employment, by comparison, has declined by nearly 29,000.
Construction overall has added an average of approximately 10,000 jobs per month during the past year.
Pay also provides another indication that demand for construction workers remains strong. Average hourly earnings for construction production and nonsupervisory workers reached $39.20 in September, up from $37.57 a year earlier, an increase of more than 4%.
A Cooler Economy Does Not Necessarily Mean a Looser Construction Labor Market
The concentration of job growth in nonresidential construction comes as contractors continue to report difficulty finding qualified workers.
A September Associated General Contractors of America and NCCER workforce survey found labor shortages remained the leading cause of project delays even as demand softened in some construction markets.
Data center construction is one contributor. Among firms surveyed that had worked on data center projects during the previous 12 months, 58% said those projects had increased competition for skilled workers, while 49% reported increased wage pressure.
The findings provide useful context for September’s employment numbers. Slower national hiring does not automatically translate into greater labor availability for Owners and project teams working in active nonresidential markets. Demand for specialized workers can remain intense even as other sectors pull back.
For design-build teams, the distinction is especially important on large and complex projects where access to qualified specialty trades can affect schedules, costs and procurement decisions. September’s jobs report may show a cooler labor market overall, but in nonresidential construction, competition for skilled workers remains very much part of the picture.
