Construction Jobs Crisis: NJ Among Worst in U.S. as National Unemployment Dips

the staff of the Ridgewood blog

Trenton NJ, The latest state-by-state analysis of U.S. Bureau of Labor Statistics data reveals a startling divide in the American construction industry. While the national construction unemployment rate fell to 5.0% in December 2025, a slight decrease from the previous year, New Jersey has emerged as one of the hardest-hit states in the nation.

With a construction unemployment rate of 10.1%, New Jersey now ranks among the five worst states for construction jobs, trailing only Connecticut, Rhode Island, and Minnesota.

The PLA Controversy: A Barrier to Employment?

Industry leaders are sounding the alarm, specifically pointing to the expansion of Project Labor Agreements (PLAs) as a primary concern. Samantha Roman, President of the Associated Builders and Contractors (ABC) New Jersey Chapter, warns that these agreements could worsen the current crisis.

“With New Jersey now among the bottom five states for construction unemployment, we should be doing everything possible to create jobs—not limiting who can work,” Roman stated. She argues that the broad expansion of PLAs will exclude the majority of the state’s construction workforce, potentially deepening the unemployment spike.

National Trends: A Slowing Market

Despite the high rates in some areas, 60% of U.S. states saw lower construction unemployment rates compared to the same period in 2024. However, the growth in payroll employment is the smallest year-over-year increase since the pandemic began in March 2021.

Top Factors Impacting the Industry:

• Rising Costs: Tariffs and supply chain disruptions continue to drive up building material prices.

• Labor Shortages: Immigration enforcement and a lack of skilled workers are putting pressure on wages.

• Economic Headwinds: Increased insurance costs are cutting into project margins.

A Glimmer of Hope: AI and Lower Interest Rates

While the “Bottom Five” states (Illinois, New Jersey, Connecticut, Rhode Island, and Minnesota) face steep challenges, there are reasons for optimism. Bernard Markstein, chief economist of Markstein Advisors, notes that a “somewhat easier policy stance by the Federal Reserve” has led to lower interest rates, with further declines expected throughout the year.

Additionally, the adoption of Artificial Intelligence (AI) and advanced software is helping companies control costs and find new efficiencies in their existing workforces.

---

Follow the Ridgewood blog has a brand-new new X account, we tweet good sh$t
https://twitter.com/TRBNJNews
https://truthsocial.com/@theridgewoodblog
https://mewe.com/jamesfoytlin.74/posts
#news #follow #media #trending #viral #newsupdate #currentaffairs #BergenCountyNews #NJBreakingNews #NJHeadlines #NJTopStories

#ConstructionJobs #NJEconomy #UnemploymentRates #AIinConstruction #RealEstateDevelopment #LaborMarket #NewJerseyNews #EconomicTrends2026