AGC's Data DIGest: March 30-April 3, 2026

Why It Matters

The data signals a sectoral shift toward non‑residential projects and tighter labor markets, while tariff changes threaten to raise material costs, affecting profitability and project timelines.

Key Takeaways

• Construction employment rose 0.7% YoY to 8.33 M.
• Nonresidential jobs grew 1.7% YoY; residential fell 0.9%.
• Construction hourly wages 5% higher YoY, $38.62 average.
• Job openings rate dropped to 2.4%, lowest since 2014.
• Multifamily growth strongest in low‑density micropolitan areas (+14%).

Pulse Analysis

Construction employment in March 2026 reached 8.33 million, a modest 0.7 % year‑over‑year gain driven primarily by non‑residential activity. Non‑residential jobs rose 1.7 % YoY, while residential employment slipped 0.9 %, underscoring a sectoral shift toward infrastructure and commercial projects. Average hourly earnings for production workers climbed 5 % to $38.62, outpacing the private‑sector average and squeezing contractor margins. At the same time, job openings fell to 202 000 and the hires rate slipped to a 26‑year low, suggesting firms are tightening labor pools despite low layoff and quit rates.

The Trump administration’s new tariff framework adds a 25 % levy on finished products containing steel, aluminum or copper, replacing the previous 50 % duty that applied only to the metal value. By taxing the entire derivative product, the policy could raise material costs for a broad swath of construction inputs, from structural steel beams to prefabricated panels. Contractors may respond by accelerating procurement, seeking alternative alloys, or passing costs to owners, which could further tighten margins in an already labor‑intensive market.

Despite the hiring slowdown, multifamily construction is expanding across all density categories, with the strongest gains—14 %—in low‑density micropolitan counties. This growth reflects persistent affordability pressures in for‑sale housing and a shift toward rental‑oriented development in smaller markets. Executive compensation is expected to rise another 4 % in 2026, keeping wage growth above inflation and reinforcing the sector’s talent retention challenges. Together, these dynamics point to a construction landscape where material cost volatility and regional demand differentials will shape profitability through the remainder of the year.