The construction industry added 15,000 jobs on net in June, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has increased by 121,000 jobs, or 1.5%. 

Nonresidential construction employment expanded by 9,200 positions on net, with growth registered in just 1 of 3 major subcategories. Nonresidential specialty trade added 12,400 jobs, while heavy and civil engineering and nonresidential building lost 2,800 and 400 jobs, respectively.

The construction unemployment rate fell to 3.4% last month. Unemployment across all industries declined from 4.2% in May to 4.1% in June.

“Virtually every economist has been waiting for indications of stagflation,” said ABC Chief Economist Anirban Basu. “The wait continues. June’s employment report, coupled with recent inflation data, indicate that the U.S. economy continues to demonstrate solid momentum, stable unemployment and declining inflation. Construction added jobs for a second consecutive month.

“While many will cheer this jobs report, some construction firm leaders may not be among that group,” said Basu. “While abating fears of recession are comforting, these data effectively slammed the door shut on a July Federal Reserve interest rate cut. A growing fraction of contractors is experiencing weakness in backlog as projects are postponed in an uncertain economic environment coupled with stubbornly elevated borrowing costs.

“At the same time, construction materials prices have begun to edge higher, in part because of substantial tariffs on steel, aluminum, Canada, Mexico and China,” said Basu. “All things equal, that will drive up construction delivery costs, render more projects uneconomical and diminish contractor margins. Shifting immigration policy stands to reinforce these dynamics. Close attention should be paid to the profit margins component of ABC’s Construction Confidence Index in the coming months, which should reflect how these higher costs are affecting contractor operations.”

Construction input prices increased 0.2% in May compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased 0.3% for the month.

Overall construction input prices are 1.3% higher than a year ago, while nonresidential construction input prices are 1.6% higher. Prices decreased in 2 of the 3 energy categories last month. Natural gas prices were down 18.7%, while prices for unprocessed energy materials were down 3.5%. Crude petroleum prices increased 1.3% in May.

“Construction materials prices continued to increase at a faster-than-ideal pace in May,” said ABC Chief Economist Anirban Basu. “While input prices are up just 1.3% over the past year, that modest escalation is entirely due to price decreases during the second half of 2024. Costs have increased rapidly since the start of this year, with input prices rising at a 6% annualized rate through the first five months of 2025.

“Accelerating input price escalation is largely due to rapid price increases for tariff-affected goods like iron and steel,” said Basu. “Expect this dynamic to remain over the next few quarters; these data predate tariffs on iron and steel rising from 25% to 50%, which went into effect on June 4. Despite rising input prices, contractors remain relatively optimistic about their profit margins, according to ABC’s Construction Confidence Index. With cooler-than-expected economywide inflation in May, the number of expected rate cuts in 2025 has risen. If those expectations are realized, it would provide the construction industry with a much-needed tailwind.”

The construction industry added 4,000 jobs on net in May, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has increased by 126,000 jobs, an increase of 1.5%. 

Nonresidential construction employment increased by 11,300 positions, with growth in all three subcategories. Nonresidential specialty trade added the most jobs, increasing by 4,500 positions, while heavy and civil engineering and nonresidential building added 3,700 and 3,100 jobs, respectively.

The construction unemployment rate decreased to 3.5% in May. Unemployment across all industries remained unchanged at 4.2%.

“The nonresidential construction segment has now added jobs at over twice the pace of the broader economy during the past 12 months,” said ABC Chief Economist Anirban Basu. “This hiring has been aided by softness in the residential segment, which lost over 7,000 jobs in May, freeing up workers for nonresidential contractors. Even so, the industrywide unemployment rate fell to an exceptionally low 3.5% in May, indicating that the labor supply remains unusually tight.

“Despite healthy nonresidential hiring, the broader industry has added just 25,000 jobs from January to May,” said Basu. “That marks the slowest five-month employment growth since 2020 and provides a clear indication that high interest rates, tight lending standards and policy uncertainty are weighing on industrywide momentum. Of course, contractors remain broadly optimistic in the face of those headwinds, according to ABC’s Construction Confidence Index, with a majority of contractors expecting their staffing levels to increase over the next six months.”

Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.4 months in May, according to an ABC member survey conducted May 20 to June 3. The reading is up 0.1 months since May 2024.

View the full Construction Backlog Indicator and Construction Confidence Index data series. 

While the South maintains the longest backlog of any region, it was the only one to experience a decline in May. Only the Northeast has longer backlog on a year-over-year basis, while the other three regions experienced annual declines.

ABC’s Construction Confidence Index reading for profit margins improved in May, while the readings for sales and staffing levels fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“The impacts of tariffs are increasingly apparent, with nearly 1 in 4 ABC member contractors reporting tariff-related project cancellations or delays in May,” said ABC Chief Economist Anirban Basu. “While 87% of survey respondents have been notified of tariff-related materials price increases, profit margin expectations actually improved in May.

“Of course, this survey was largely conducted prior to the announcement of the now-implemented 50% steel and aluminum tariffs, and margins will likely come under pressure in the coming months,” said Basu. “Despite this potential headwind, approximately 6 out of 10 contractors expect their sales to increase over the next two quarters, suggesting widespread optimism about the outlook.”

National nonresidential construction spending decreased 0.1% in April, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.248 trillion.

Spending was down on a monthly basis in 6 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.5%, while public nonresidential construction spending was up 0.5% in April.

“Construction spending slipped in April as headwinds like trade policy uncertainty, high interest rates and tight lending standards continued to batter industrywide momentum,” said ABC Chief Economist Anirban Basu. “Nearly 22% of contractors reported tariff-related project delays or cancellations in April, and despite changes to certain import tax rates in May, policy uncertainty remains extraordinarily elevated.

“With the exception of data centers and certain public sector segments, the industry has few bright spots at the moment,” said Basu. “Private nonresidential spending has fallen in 3 of the first 4 months of 2025 and is on pace to decline 4% for the year. This is especially concerning given a nearly 10% year-over-year decline in computer/electronic manufacturing construction spending, the segment that bolstered the industry throughout much of 2023 and 2024.”

By Luiza Mills, Interstate Electrical Services Corporation

The last decade has been a prosperous one for both our industry in general, the open shop, and for fostering fair and equitable entrepreneurial development.  A good economy translated to strong demand for construction services.  At the state level, we benefitted from the tenure of Gov. Charlie Baker, a strong believer in fair and open competition. 

However, change is inevitable. It can bring promise but can also bring us to a crossroads. Today the economy shows signs of slowing, language in a state economic development law passed last year may make it easier for state and local governments to use union-only project labor agreements, and as you are aware, Gov. Healey signed an executive order earlier this year calling on state agencies to conduct an analysis of whether PLAs are appropriate for their construction projects.

In Boston, Mayor Michelle Wu recently signed a PLA with the Boston Building Trades Unions and the North Atlantic Regional Council of Carpenters for Boston Public Schools construction projects.  The city's press release says PLAs would be considered on a case-by-case basis for each project, in accordance with the state economic development legislation language.  We are at a crossroads.

As ABC MA President Greg Beeman said, "This PLA is an election year gift to the unions at the expense of Boston taxpayers.  While Mayor Wu talks about inclusion and opportunity, the fact is that PLA union labor requirements effectively exclude over 80 percent of the workforce that chooses not to join a union, including the vast majority of minority contractors." 

ABC MA has requested a copy of the PLA and a list of any projects that have been determined to be included under the PLA, as well as those under consideration at this time. ABC will review this and work hard to stay ahead of the issue.  

The saying “Get into politics or get out of business” is familiar to many of our members, as it has long been one of our Chapter’s central messages.  Today those words ring truer than ever.

ABC MA remains committed to open and fair opportunities and bidding without labor restrictions and will evaluate options regarding the Boston schools PLA.  Your help and involvement are crucial.  The Chapter has established a PLA Task Force to coordinate our efforts and leverage our companies’ voice as employers of tens of thousands of Massachusetts workers. 

Please consider becoming involved in the fight for our rights by joining the task force.  To learn more, please contact Greg Beeman at [email protected].  We thank you for helping us push for fair and equitable development, growth and opportunity.

Members who employ pipefitters and refrigeration technicians should be aware that changes have been made to the regulations for licensure that will add additional education hours to the licensure requirement for these trades effective 11/26.  These changes are included in the new version of the regulations, 528 CMR 11, that has been posted on the website of the Bureau of Pipefitters, Refrigeration Technicians and Sprinkler fitters. 

ABC did not advocate for these changes and is looking into the background behind them.  Just last week, Governor Healey announced that her administration is eliminating a series of regulations under the Office of Consumer Affairs and Business Regulation, which oversees licensing, for the purpose of saving businesses time and money and enhancing the state’s competitiveness.  ABC will ask the Governor to review these increases in pipefitter and refrigeration schooling, which clearly runs counter to these goals. 

The changes are scheduled to take effective as of 11/9/2026.  Please click the link to review the updated regulations 528 CMR 11.

ABC’s Gould Construction Institute issued the information below to students in these trades.

If you are preparing to take your exam after November 9, 2026, please plan accordingly as you may need to continue with your school hours and register for class in September to obtain the total number of educational hours needed based on these new changes.  

The program requirements are summarized below based on the timing of when you expect to sit for your exam.

Unrestricted Pipefitting Journeyman License Requirements

(Prior to November 9, 2026)

High School Diploma or state equivalency certificate

• 350 classroom hours (ASME)
• 6,000 field hours obtained on the job
• Two different cards must be obtained prior to the start of school.  Apprentices MUST apply for an apprentice license through the Bureau of pipefitters, Refrigeration Technicians and Sprinkler fitters AND register as an apprentice through the Division of Apprenticeship Standards.

(On or after November 9, 2026)

• High School Diploma or state equivalency certificate

• 450 classroom hours (ASME) – New!
• 6,000 field hours obtained on the job
• Two different cards must be obtained prior to the start of school.  Apprentices MUST apply for an apprentice license through the Bureau of pipefitters, Refrigeration Technicians and Sprinkler fitters AND register as an apprentice through the Division of Apprenticeship Standards.

Exception: the Bureau may, in its discretion, accept applications meeting requirements effective prior to November 9, 2026 for individuals who suffered from a relevant, documented hardship. However, no such waivers shall be granted on or after May 10, 2027.

Refrigeration/Air Technician License Requirements

(Prior to November 9, 2026)

• High School Diploma or state equivalency certificate
• 100 Refrigeration Theory classroom hours
• 150 Electrical Code classroom hours
• EPA Section 608 Universal certification
• 6,000 field hours obtained on the job
• Two different cards must be obtained prior to the start of school.  Apprentices MUST apply for an apprentice license through the Bureau of pipefitters, Refrigeration Technicians and Sprinkler fitters AND register as an apprentice through the Division of Apprenticeship Standards

(On or after November 9, 2026)

• High School Diploma or state equivalency certificate
• 300 Refrigeration Theory classroom hours - New!
• 150 Electrical Code classroom hours
• EPA Section 608 Universal certification
• 6,000 field hours obtained on the job
• Two different cards must be obtained prior to the start of school.  Apprentices MUST apply for an apprentice license through the Bureau of pipefitters, Refrigeration Technicians and Sprinkler fitters AND register as an apprentice through the Division of Apprenticeship Standards

Exception: the Bureau may, in its discretion, accept applications meeting requirements effective prior to November 9, 2026 for individuals who suffered from a relevant, documented hardship. However, no such waivers shall be granted on or after May 10, 2027.

If you have any questions on these requirements, please do not hesitate to reach out to anyone on the GCI team. 

Firm’s client accused of breach of fiduciary duty, conversion and breach of contract; lawsuit requested equitable relief and damages

Following four-and-a-half years of litigation, including jury and bench trials, Jon Friedmann, Eric Walz, and Casey Sack secured a complete victory for the firm’s client in the Business Litigation Session of Suffolk County Superior Court. The Rudolph Friedmann trial team won on all counts before the jury, defeated all claims before the judge, and prevailed on the client’s counterclaim for indemnification.

The case involved an executive-level employee who left her employer to start her own business and was sued by her former employer. The employee, represented by RF, was also a Trustee of her former employer’s insurance trust and was accused of breach of fiduciary duty, conversion, and/or breach of contract. Her former employer also sought equitable relief for disgorgement of profits and treble damages under 93A. The firm’s client filed a counterclaim for indemnification.

After nearly three weeks of testimony in the November 2024 jury trial, during which the firm presented substantial evidence that the allegations were untrue and the funds subject to the alleged misappropriation were well-documented and lawful, the jury deliberated for less than one day and returned a unanimous verdict for the firm’s client on all counts.

The court reserved the plaintiffs’ requests for equitable relief and damages under M.G.L. c. 93A to itself and a bench trial was held on April 16, 2025. At the conclusion of the case, the judge ruled against the plaintiffs and for the firm’s client on both claims. The court also ruled the firm’s client prevailed on her claim for indemnification and is entitled to attorney’s fees in connection with all claims brought against her.

Massachusetts Lawyers Weekly spoke with Jon Friedmann about the case. Jon noted that the decision is important because indemnification agreements in corporate documents are often overlooked. “The ruling helps clarify indemnification rights and also helps clarify when [alternative remedies like disgorgement] are appropriate.”

Given the time and resources all our ABC member companies devote to workforce development, I didn’t want to let National Apprenticeship Day on April 30 pass without noting the work of ABC MA in support of our collective efforts. 

It’s gratifying to see so many people appreciate the benefits of apprenticeship.  The Healey administration and the legislature have increased state support for it. While we applaud them for this, we continue to press on the critical need for ratio reform so we can expand apprentice employment and continue to evolve with the times.  

Last year marked the 10^th anniversary of National Apprenticeship Week, and it included   over 2,500 events and proclamations across all 50 states showcasing the value of apprenticeship as a way to create pathways into in-demand jobs and develop a highly skilled workforce to meet industry needs and strengthen the economy. This year, the U.S. Department of Labor moved the observance to the Spring with a one-day event and beginning next year it will again be a week-long celebration.

ABC MA works in tandem with our education and workforce affiliates the Gould Construction Institute and Building Mass Careers to support an ongoing apprenticeship pipeline for our member firms.  Our members, in turn, know the value of apprenticeship.  You are the reason why GCI now educates over 1,100 students each year and has a new training facility to provide state-of-the art hands-on training.

Our new non-profit Building Mass Careers works with GCI to meet your workforce development needs.  BMC attends career fairs and provides pre-apprenticeship training with funding awarded through competitive grants.  We’re launching a new Capstone program that will bring interested high school students to GCI’s new Billerica facility each spring to introduce them to construction and expose them to all the vast opportunities available within the trades.

Construction offers careers and tremendous opportunities with competitive family-sustaining wages and without the burden of endless college debt.  Apprenticeship is how we make this happen.  I am excited to see how ABC MA, GCI and BMC can further develop and expand our support of members in apprenticeship and workforce development.  Let’s take a moment to commit to building on our success as we salute the apprentices who are the future of our companies and industry!

The national March 2025 not seasonally adjusted construction unemployment rate was 5.4%, unchanged from March 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors. The analysis found that 19 states had lower estimated construction unemployment rates over the same period, 25 had higher rates and six states had the same rates. All states except for Connecticut, Maine, New Jersey and Rhode Island had construction unemployment rates below 10%.

National NSA payroll construction employment was 140,000 higher than March 2024. As of March 2025, SA payroll construction employment was 703,000, or 9.2%, above its pre-pandemic peak of 7.6 million.

 

Estimated state construction unemployment rates were lower than their pre-pandemic level in much of the country. As of March 2025, 30 states had lower construction unemployment rates compared to March 2019 and 17 states had higher rates, while Alabama, Florida and Minnesota had the same rate.

Estimated state construction unemployment rates were lower than their pre-pandemic level in much of the country. As of March 2025, 30 states had lower construction unemployment rates compared to March 2019 and 17 states had higher rates, while Alabama, Florida and Minnesota had the same rate.

“Although March state construction unemployment rates show a relatively healthy level of construction employment, rising uncertainty about the business climate over the remainder of this year and 2026 is weighing on contractor and developer plans,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “Confusion surrounding tariffs and their impact on building materials prices has increased the level of uncertainty. This is on top of continued elevated interest rates and higher labor costs. These concerns are stoking fears of a major economic slowdown and the possibility of a recession. For now, most of the construction industry is slowing or temporarily halting hiring workers as they seek greater clarity as to where the economy is headed.”

Recent Month-to-Month Fluctuations

In March, the national NSA construction unemployment rate dropped 1.8% from February as the weather improved in much of the country. All but two states (Louisiana and Mississippi) had lower estimated construction unemployment rates than in February.

The Top States

The five states with the lowest estimated NSA construction unemployment rates for March were:

1. South Dakota, 1.9%
2. Oklahoma, 2.3%
3. New Hampshire, 2.8%
4. West Virginia, 3.1%
5. Florida, 3.2%

South Dakota, Oklahoma and West Virginia all notched their lowest March NSA estimated construction unemployment rate on record. New Hampshire had its second-lowest March rate on record. Florida had its third-lowest March unemployment rate on record, behind its March rates in 2023 and 2024 (2.7% and 2.8%, respectively).

The Bottom States

The five states with the highest March estimated NSA construction unemployment rates were:

46. Minnesota, 9.8%
47. Connecticut, 10.0%
48. Maine, 10.2%
49. New Jersey, 12.2%
50. Rhode Island, 16.0%

Rhode Island, Connecticut and Minnesota had the second, third and fourth largest reduction in their monthly NSA estimated construction unemployment rates, respectively, among the states, behind Montana.