Construction Adds 11,000 Jobs in September 2026 as Data Center Trades Lead

Construction added about 11,000 jobs in September 2026 while the overall U.S. economy added just 29,000, according to the Bureau of Labor Statistics jobs report released October 2. Nonresidential trades tied to data center work drove the gain, while residential specialty contractors cut jobs ENR Associated General Contractors of America CNBC.

What the report shows

The national unemployment rate rose to 4.2% from 4.1% in August, and payroll growth fell well short of the 84,000 jobs economists surveyed by Dow Jones expected CNBC ENR. BLS also revised July and August payroll growth down by a combined 60,000 jobs, turning July's first-reported gain of 21,000 into a loss of 10,000 ENR. The full release is posted by the Bureau of Labor Statistics.

The AGC said construction firms added 11,000 jobs in September and that industry employment rose 1.3% over the past year Associated General Contractors of America. ENR reported total construction employment of 8.364 million, up 109,000 jobs from a year earlier ENR.

Nonresidential up, residential down

• Nonresidential: Up 16,100 jobs, including 12,300 at specialty trade contractors, 2,600 at heavy and civil engineering firms and 1,200 at nonresidential building contractors ENR.
• Residential: Down 4,900 jobs net, as residential specialty trade contractors lost 7,900 jobs and residential builders added 3,000 ENR.
• Unemployment: The construction unemployment rate was 3.5%, down from 3.8% a year earlier. These figures are not seasonally adjusted ENR.
• Wages: Average hourly earnings in construction reached $41.69, up 4.2% from $40.01 a year earlier, compared with 3% growth for all private-sector workers ENR.

One number needs explaining. ENR's text reports 11,000 construction jobs, but its summary box lists 19,000 ENR. The sector figures ENR reports, a 16,100 nonresidential gain and a 4,900 residential loss, net to about 11,200. That matches the AGC figure of 11,000, so WCG uses 11,000 here Associated General Contractors of America.

"The construction industry added jobs for the seventh straight month in September," said Anirban Basu, chief economist for Associated Builders and Contractors. He said growth is increasingly concentrated on the nonresidential side as the data center boom supports rapid hiring in certain specialty trades ENR.

Why it matters

Construction is still hiring while the broader labor market slows sharply. That supports nonresidential backlogs, but the gains are narrow. Data center and power work is absorbing specialty trades, especially electrical and mechanical labor, while residential trades are shedding workers.

Wage growth of 4.2% is running above the private-sector average, which keeps labor cost pressure on bids. A 3.5% construction unemployment rate also means firms have few idle skilled workers to hire.

What it means for owners, contractors and subs

• Owners and developers: Expect continued competition for electrical and mechanical trades on projects near active data center markets.
• General contractors: Labor escalation should stay in estimates for 2027 work.
• Residential trades: Job losses point to softer housing activity and possible labor availability that commercial firms may be able to hire.
• Western New York firms: National trade shortages can affect regional crews as workers travel to large data center and manufacturing jobs.

What to watch next

This is a developing data story. Watch for further BLS revisions to September, the October jobs report in early November, and whether residential job losses spread to builders. Also watch AGC's metro employment data for the Rochester and Buffalo areas.

Bottom line

Construction outperformed a weak September jobs report, adding about 11,000 jobs as nonresidential and data center trades kept hiring. Residential trades lost ground, and wage growth remains strong.

Image credit: ENR. Image from the source article.

Sources

• ENR: https://www.enr.com/articles/63749-data-centers-drive-construction-hiring-in-september-as-residential-jobs-slide
• Associated General Contractors of America: https://news.agc.org/economics/construction-adds-11000-jobs-as-workforce-challenges-persist/
• CNBC: https://www.cnbc.com/2026/10/02/jobs-report-september-2026.html
• U.S. Bureau of Labor Statistics: https://www.bls.gov/news.release/empsit.nr0.htm