WASHINGTON — U.S. construction employment rose by 22,000 jobs in July, providing a modest source of job growth as the broader labor market unexpectedly contracted, according to data from the U.S. Bureau of Labor Statistics released Friday.
The increase in construction followed a gain of 5,000 jobs in June and a 2,000-job increase in May, based on the latest seasonally adjusted figures. Construction employment had declined by 6,000 jobs in July 2025.
The July increase stood out against an overall U.S. payroll decline of 23,000 jobs. The Labor Department said employment changed little across several major industries, including construction, manufacturing, wholesale trade, transportation and warehousing, and professional and business services.
Reuters reported that construction added 22,000 jobs during the month, while manufacturing employment increased by 5,000. The gains came as private-sector payrolls rose by 30,000, offsetting a 53,000 decline in government employment.
The construction increase was part of a broader 25,000-job rise in goods-producing industries in July. Mining and logging employment fell by 2,000, while manufacturing added 5,000 jobs.
The construction data provided a contrast to weakness elsewhere in the labor market. Local government education employment fell by about 50,000 jobs, while retail trade lost roughly 19,000 and financial activities shed 14,000. Health care continued to add jobs, increasing employment by 22,000, although that was below its average monthly gain of 36,000 over the previous year.
The overall employment report also showed that previously reported payroll gains were revised sharply lower. May's increase was revised down by 66,000 jobs to 63,000, while June's gain was reduced by 37,000 to 20,000. The revisions left combined employment for May and June 103,000 lower than previously reported.
The unemployment rate edged down to 4.1% in July from 4.2% in June, but the labor force participation rate fell to 61.4%, its lowest level since February 2021, as 264,000 people left the labor force.
The July construction employment figures are preliminary and subject to revision as the Bureau of Labor Statistics receives additional reports. The next Employment Situation report, covering August, is scheduled for Sept. 4.
