Economic News
Employment in Construction Slows for Third Consecutive Month
Immigration enforcement and increased material prices factors in jobs decrease

The latest job numbers show the roofing industry’s labor shortage is only worsening, with little to no increase in job growth and the effects of aggressive immigration policies taking effect.
According to the latest data from the Bureau of Labor Statistics, the construction industry lost 7,000 jobs in August. The Associated Builders and Contractors’ analysis of the numbers shows that on a year-over-year basis, industry employment has grown by 58,000 jobs, an increase of 0.7%.
On the non-residential side, employment decreased by 1,200 positions. Non-residential building lost 3,300 jobs, while nonresidential specialty trade lost 200 positions.
Construction unemployment dropped to 3.2% in August. Overall unemployment across all industries increased from 4.2% in July to 4.3% in August, the highest level in nearly four years.
“Construction industry data have been particularly downbeat since March,” said ABC Chief Economist Anirban Basu. “With materials prices rising and construction spending shrinking, it’s hardly a surprise that the industry’s workforce is contracting.”
Basu added that industrywide employment is up by 6,000 positions since December.
A survey from the Associated General Contractors of America and the National Center for Construction Education and Research found that 80% of firms employing craft workers have openings, while four-fifths are also seeking salaried staff.
The surveyed contractors said the issue isn’t just quantity, but quality: 57% said candidates lack basic skills, 48% report hires no-show or quit quickly, and 41% cite missing credentials, like driver’s licenses or work permits.
The overall economy added 22,000 jobs last month. The latest Bureau of Labor Statistics numbers included a revision of June, which showed 13,000 jobs were lost that month. This is the first negative employment month since December 2020.
July’s numbers were revised as well, increased by 6,000 to 79,000.
“Despite these job losses, construction labor shortages appear to be worsening as immigration policy weighs on the supply of workers; the construction unemployment rate fell to 3.2% in August, matching the lowest level ever recorded,” Basu said.
Immigration Policies Take Their Toll
With census data showing that 61% of workers in roofing and insulation are foreign-born, the Trump administration’s immigration crackdown is whittling away the available labor pool for roofing companies.
A demographic report from the nonpartisan Congressional Budget Office states that due to the immigration enforcement provisions in the 2025 reconciliation act — AKA the One Big Beautiful Bill — they’re projecting 320,000 fewer people in Social Security and 280,000 fewer people age 16 or older in the civilian noninstitutionalized population in 2035.
The report says the 2025 reconciliation act will result in the removal of 290,000 immigrants and the voluntary emigration of 30,000 people from 2026 to 2030. About 50,000 immigrants, on average, will be held in detainment each day over the 2026 to 2029 period as a result of the law. An estimated 5,500 more arrests by ICE agents are projected for 2026, rising to 100,000 in 2029.
RELATED: E-Verify Gaps Put Roofing Contractors at Risk of Immigration Violations
The U.S. population is projected to increase from 350 million in 2025 to 367 million in 2055, based on projected net immigration through 2033 and lower fertility rates.
“In CBO’s assessment, the effects of administrative action taken since Jan. 20, 2025, had a larger effect on the population than the effects of the 2025 reconciliation act,” the report states.
The report notes that the projections could differ depending on future legislative or administrative changes, though those would occur in later years since the differences would compound over time.
Increased enforcement is already impacting workers. In Rochester, N.Y., Attorney Albert Parisi of Parisi & Bellavia told Rochester First that three roofers who were injured while working as subcontractors for a local roofing company might face deportation after filing suit.
Parisi said the individuals fell off the roof and broke multiple bones, and once they sought legal counsel, they face the threat of being deported.
“It’s heartbreaking to think of those individuals doing the hardest jobs in our society, and now they’re in their homes wondering, ‘Can I go to work?” Parisi told Rochester First.
The case comes on the heels of the U.S. Supreme Court’s emergency decision to allow immigration officials in California to conduct stops based on a person’s apparent ethnicity and language.
Solutions are being explored at the federal level. The bipartisan Dignity Act of 2025 aims to provide border security and offer a structured legal framework for workforce stability, something roofing contractors need to maintain their skilled labor pool. The last action taken on the bill was July 15, when it was introduced and referred to multiple House committees.
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