Construction Is Hiring Again — but Fuel Costs and Borrowing Rates Are Eating Into the Good News
The industry added 26,000 jobs in March, but diesel topping $5.40 a gallon and rising Treasury yields are raising alarms for contractors heading into the busy season
The construction industry added 26,000 jobs in March, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment increased by 57,000 jobs, a gain of 0.7 percent.
For roofing contractors, the gain in nonresidential construction employment (up 12,200 jobs) signals continued activity in commercial and institutional projects where low-slope and steep-slope systems are installed. Nonresidential building added 4,500 jobs, while specialty trades, which include roofing crews, increased by 3,900 positions.
The construction unemployment rate was 6.7 percent in March. Across all industries, unemployment declined to 4.3 percent, though it remains 0.1 percentage points higher than one year ago. A relatively tight labor market continues to challenge roofing contractors, particularly for experienced installers and crew leads.
“Construction employment rebounded in March as both residential and nonresidential segments added jobs,” said ABC Chief Economist Anirban Basu. “Industrywide employment has expanded by an average of 19,300 jobs per month in 2026. That marks an improvement from 2025, when construction employment declined, but there are still concerns about the outlook.”
“The March data do not reflect the ongoing effects of the conflict in Iran on construction costs,” Basu added. “Oil prices have climbed to levels not seen since 2022, and diesel prices have reached 5.40 dollars per gallon, up more than 1.90 dollars per gallon since the start of 2026. At the same time, higher Treasury yields are increasing borrowing costs.”
Field Implications for Roofing Contractors:
Elevated diesel prices directly increase mobilization, crane use and material delivery costs, especially for membrane rolls, insulation and ballast. Petroleum-based roofing materials, such as asphalt shingles, modified bitumen and single-ply membranes, may face additional price pressure tied to oil volatility. Higher borrowing costs could delay commercial reroofing cycles and new construction starts, tightening bid opportunities even as current project backlogs remain active.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
