The latest U.S. jobs report for February 2025 was mixed overall but gave a positive indication for the construction sector, which added about 19,000 jobs. 

While residential construction gained 12,700 jobs, non-residential construction employment added 6,200 jobs for the month, according to analysis from the National Association of Home Builders.

With the unemployment rate rising slightly to 4.1%, total nonfarm payrolls increased by 151,000 jobs last month. 

Although this number fell short of analyst expectations, it highlighted the momentum in construction activity that could support related industries, including roofing.

“The winds in the labor market are shifting,” Bernard Baumohl, chief global economist at the Economic Outlook Group told Reuters, with construction standing out amid gains in health care, financial activities, transportation and social assistance. 

The rise in construction jobs is encouraging for roofing contractors. However, the NAHB cautions that there are signs of possible weakness in the coming months, driven by widespread federal government layoffs and ongoing policy uncertainty.

The NAHB reports that residential construction employment stood at 3.4 million in February, broken down as 955,000 builders and 2.4 million residential specialty trade contractors, which includes roofing.

The Bureau of Labor Statistics says the six-month moving average for job gains in residential construction stands at 2,600 per month. Home builders and remodelers have netted 50,500 new jobs in the past year. 

Since hitting a low after the Great Recession, residential construction has added 1,387,000 positions.

According to the BLS, the unemployment rate for construction workers rose to 5.3% on a seasonally adjusted basis in February after reaching a staggering 15.3% in April 2020 due to the housing demand impact of the COVID-19 pandemic.

Market observers point to the Trump administration's ever-evolving trade policies and adjustments in federal spending as factors that could temper the pace of expansion. 

“The current data provide a solid foundation for growth,” Scott Anderson, chief U.S. economist at BMO Capital Markets told Reuters. “But businesses should remain vigilant as economic policies continue to evolve.” 

Federal government employment declined by about 10,000 jobs in February, but that number is expected to increase substantially as the February report is a laggard indicator. 

The contraction in the public sector contrasts with the gains in the private sector and reflects ongoing efforts to rein in government spending amid shifting fiscal priorities. 

Other key sectors recorded mixed results: health care added 52,000 jobs, financial activities rose by 21,000, transportation and warehousing increased by 18,000, social assistance advanced by 11,000, and manufacturing grew by 10,000 jobs. 

These figures contribute to an overall picture of an economy expanding steadily — even if unevenly — amid external pressures. 

Industry leaders advise roofing companies to leverage the momentum by investing in technology and workforce training. 

By embracing innovations such as advanced roofing materials, digital estimating tools and streamlined project management software, roofing businesses can better insulate themselves from potential material price increases.

Collectively, the roofing industry’s “Big 3” suppliers, ABC Supply Co., Beacon and SRS Distribution, have reportedly initiated price increases of between 6% and 8% for certain critical products, including asphalt shingles, that are expected to take effect April 1.

Meanwhile, economists warn that while the construction sector’s rebound is encouraging, the overall economic outlook remains subject to risks from policy shifts and global supply challenges. 

5 Takeaways

• Construction Job Growth: The sector added 19,000 jobs in February, with residential construction leading at 12,700 new positions. 
• Roofing Industry Impact: Increased construction activity could benefit roofing contractors, but rising material costs may offset gains.  
• Economic Uncertainty: Shifting trade policies and federal spending cuts create uncertainty for future construction job growth. 
• Labor Market Shifts: Despite gains in construction, overall U.S. unemployment rose to 4.1%, signaling mixed economic signals.  
• Adaptation Strategies: Roofing businesses are encouraged to invest in technology and workforce training to navigate potential challenges.

Trade policy uncertainty — exacerbated by recent tariff adjustments and fluctuations in federal spending — could impact future growth. 

“Although construction is showing strong performance, companies across the board need to stay agile and be ready to adjust their strategies as external factors evolve,” Anderson noted.