New Jersey Posts Second-Highest Construction Unemployment Rate in the Nation for June

TRENTON, NJ – New Jersey’s construction industry faced a significant employment challenge in June 2025, recording the second-highest not seasonally adjusted (NSA) construction unemployment rate in the nation at 8.5%, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors of New Jersey (ABC-NJ).

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%.

“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 many states saw year-over-year improvement, New Jersey was among the 28 states with higher construction unemployment rates compared to June 2024. This suggests a troubling trend for an industry that plays a vital role in New Jersey’s economy and infrastructure development.

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%. However, 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.

National Context:

• Top-performing states included South Dakota (0.8%), North Dakota (1.2%), and New Hampshire (1.3%), all boasting record-low construction unemployment.
• In contrast, New Jersey (8.5%) and Rhode Island (8.9%) anchored the bottom of the list.

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.

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