According to the Federal Reserve Bank of Minneapolis’s spring Construction Survey, construction activity has softened in the first months of 2026. Higher material costs and ongoing economic uncertainty are the driving factors, with more than half of respondents, approximately 54%, reporting decreased activity in the industry overall. However, signs point to optimism for the remainder of 2026 within residential construction.
Despite tough conditions for some, roughly four in 10 businesses reported hiring more construction workers and increasing hours for existing employees in advance of the busy season. In general, labor supply remained steady, while overall, 73% and 63% of employers reported increasing wages for skilled workers and laborers, respectively.
