New Jersey’s construction industry posted the second-highest not seasonally adjusted construction unemployment rate in the nation at 8.5% in June, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released Aug. 1 by Associated Builders and Contractors of New Jersey.
The state’s construction unemployment rate rose notably from June 2024, reflecting broader regional and economic pressures. New Jersey was only behind Rhode Island (8.9%) and trailed well above the national average of 3.4%.
The jobs market in New Jersey soured in June as preliminary labor market estimates for June, published by the Bureau of Labor Statistics, showed that total nonfarm employment decreased by 9,700 jobs to a seasonally adjusted level of 4,382,600 jobs, while the state’s unemployment rate ticked up 0.1 percentage point to 4.9%. Construction was one of the sectors losing jobs, shedding 900 positions during the month.
“New Jersey’s construction sector is facing headwinds, from inflationary costs to continued regulatory and permitting delays that are making it harder to get projects off the ground,” said Samantha Roman, president and CEO of ABC-NJ. “Higher labor costs, persistent interest rates, and rising uncertainty around building material tariffs are contributing to a cautious hiring climate in the state.”
While some states saw year-over-year increases, New Jersey was among the 28 states with higher construction jobless rates compared with June 2024. Nationwide, construction employment remains strong, with June payrolls up by 114,000 jobs from a year earlier.
Total seasonally adjusted construction employment stood at 8.3 million, exceeding pre-pandemic levels by 9.4%. Even so, New Jersey has not kept pace with this national rebound.
“Although most builders are reluctant to lay off skilled workers, many in New Jersey are scaling back hiring or delaying new projects amid economic uncertainty,” Roman added.
The top-performing construction employment states are South Dakota (0.8%), North Dakota (1.2%), and New Hampshire (1.3%).
Despite the high jobless rate, industry experts remain cautiously optimistic that targeted investments in infrastructure and housing, coupled with streamlined permitting and predictable regulatory policies, could help stabilize New Jersey’s construction labor market in the months ahead.
