By KEN SIMONSON

WASHINGTON, D.C. – Construction employment, not seasonally adjusted, rose year-over-year from February 2025 to February 2026 in 187 (52 percent) of 360 U.S. metropolitan areas.

Construction employment fell in 135 (38 percent) of U.S. metro areas and was unchanged in 38, according to an Associated General Contractors of America analysis.

Houston-Pasadena-The Woodlands, Texas added the most construction jobs (11,200 jobs or 4 percent), followed by St. Louis, Mo.-Ill. (4,700 jobs) Austin-Round Rock, Texas (4,700 jobs) Charlotte-Concord-Gastonia, N.C.-S.C. (4,500 jobs); and the Fort Worth-Arlington-Grapevine, Texas metro division (3,500 jobs).

The largest percentage gain of 17 percent occurred in Eau Claire, Wis. (600 jobs), followed by 16 percent increases in Bloomington, Ind. (500 jobs) and Bloomington, Ill. (400), and 15 percent gains in Sandusky, Ohio (300 jobs) and Kenosha, Wis. (300 jobs).

The largest decrease was in New York City (-6,600 jobs or -5 percent), followed by the Jersey City-White Plains, N.Y.-N.J. metro division (-5,200 or 8 percent); the Los Angeles-Long Beach-Glendale division (-4,800, -3 percent); and Riverside-San Bernardino-Ontario, Calif. (-4,600, -4 percent). The largest percentage loss occurred in Lawton, Okla. (-18 percent, -300 jobs), followed by Houma-Bayou Cane-Thibodaux, La. (-14 percent, -900); and Fairbanks-College, Alaska (-300, -12 percent).

Housing starts (units) in March increased by 10.8 percent both from February and year over year at a seasonally adjusted annual rate, following steep declines in February, according to the Census Bureau.

Single-family starts climbed 9.7 percent for the month and 8.9 percent year over year.

Multifamily (five or more units) starts rose 9.6 percent for the month and 13.5 percent year over year. Residential permits slumped 10.8 percent in March and 7.4 percent year over year. Single-family permits were down 3.8 percent for the month and 7.9 percent year over year. Multifamily permits fell 23.5 percent in March and 5.3 percent year over year. Multifamily units under construction fell by 1.5 percent, and 12 percent year over year. The number of multifamily units under construction at the end of March was down 34 percent from the peak in July 2023.

Construction industry compensation (wages, salaries, and benefits including required employer contributions) rose 0.6 percent, seasonally adjusted, in the first quarter (Q1) of 2026 and 3.2 percent over four quarters (vs. 3.9 percent from Q1 2024 to Q1 2025), BLS reported on Wednesday. Wages and salaries increased by 0.2 percent in Q1 and 3.1 percent over four quarters (vs. 4.3 percent from Q1 2024 to Q1 2025). The latest increases were less than those in the overall private sector, where compensation rose 0.9 percent in Q1 and 3.4 percent over four quarters, and wages rose 0.7 percent in Q1 and 3.4 percent over four quarters.

At the end of Q1, there were 6,020 [hotel] projects with 705,825 rooms in the pipeline, reflecting sustained development activity across the country, according to consultancy Lodging Econometrics. Of those, 1,071 projects comprising 132,016 rooms are under construction, LE says. Another 2,164 projects with 249,465 rooms are scheduled to start construction within the next 12 months, while projects in the early planning stage stand at 2,785 projects and 324,344 rooms.

Meanwhile, Q1 construction starts totaled 140 projects with 15,546 rooms, and new project announcements totaled 166 projects and 20,864 rooms. The number of projects under construction fell by 17 (-1.6 percent) from Q4 2025. Dallas had the most projects under construction (37), followed by Phoenix (36), and New York (26), according to LE.

Inflation-adjusted gross domestic product (real GDP) rose 2 percent in Q1 at a seasonally adjusted annual rate, the Bureau of Economic Analysis reported. Real private nonresidential structures’ investment fell 6.7 percent (commercial and health care, -1.5 percent; manufacturing structures, -22.7 percent; power and communication, 1.0 percent; other structures, -5.3 percent; and mining exploration, shafts, and wells, 1.6 percent), after falling 6.5 percent in Q4 2025. Real residential fixed private investment in permanent site structures fell 5.9 percent (single-family, -8.0 percent; multifamily 1.9 percent), after dipping 1.8 percent in Q4. The price index for real private fixed structures investment rose at a 3.2 percent seasonally adjusted annual rate in Q1 (5.3 percent in Q4).

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