Michael Latas & Associates
Construction Report - May 2026

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​May’s data continued to show strength, but with a clear split between large contractors and the rest of the market. Construction added 9,000 jobs in April, while nonresidential construction added 19,000 jobs. Construction unemployment fell to 3.8%, and industry employment was up 50,000 jobs year over year.
Backlog reached a stronger level in April. ABC’s backlog indicator increased to 8.8 months, a 10-month high, up 0.2 months from March and 0.1 months year over year. ENR noted that the momentum was concentrated among a subset of contractors.
Large contractors continued to sound bullish on data centers, AI infrastructure, civil work, and federally funded infrastructure. Construction Dive reported that major publicly traded builders remained optimistic around data center construction and civil/infrastructure work.
What it means: May looked like a healthy but uneven market. Larger contractors with data center, infrastructure, power, and federal exposure were in the best position, while smaller firms and traditional commercial/residential-adjacent contractors likely faced more pressure.