THE MERIT TIMES
THE MERIT TIMES!
Welcome to the latest edition of The Merit Times, ABC of California’s quarterly newsletter spotlighting the people, policies, and projects shaping California’s merit shop construction industry. This issue arrives at a pivotal moment as the state navigates shifting economic conditions, critical policy debates, and the ongoing need to strengthen and support our construction workforce. ABC remains dedicated to championing free enterprise, advocating for fair and open competition, and empowering the skilled professionals driving California’s future.
In this edition, we take a close look at national unemployment trends and the financial impacts of HR1 on California’s budget. We also examine the state’s response to mid-decade congressional redistricting, and the status of key assembly bills. Alongside policy updates, OSHA contributes valuable insights with “Safe + Sound Week,” and we spotlight HPS Mechanical, Inc. with their Tesla Cybertruck Employee of the Quarter program. Most importantly, we bring attention to the construction industry’s suicide crisis—an urgent issue that demands our collective awareness and action.
We encourage you to dive into this issue, and stay connected with ABC of California as we continue to advocate, inform, and support our members. Thank you for being a vital part of our community and for contributing to a stronger, safer, and more competitive construction industry. Together, we’re building not only projects but a better California.
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About ABC of California
MISSION: ABC of California exists to Protect, Promote, and Advance Free Enterprise, Fair and Open Competition and Workforce Development for all ABC Members in California.
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EVERY STATE HAD JUNE CONSTRUCTION UNEMPLOYMENT RATES BELOW 10%
The national June 2025 not seasonally adjusted construction unemployment rate was 3.4%, a 0.1% increase from June 2024, according to a state-by-state analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. The analysis found that 18 states had lower estimated construction unemployment rates over the same period, 28 had higher rates and four states had the same rates. All of the states had construction unemployment rates below 10%.
National NSA payroll construction employment was 114,000 higher than June 2024. As of June 2025, seasonally adjusted payroll construction employment was 8.3 million, or 9.4%, above its pre-pandemic peak of 7.6 million.
Estimated state construction unemployment rates were lower than their pre-pandemic level in three-quarters of states. As of June 2025, 37 states had lower construction unemployment rates compared to June 2019 while 12 states had higher rates, and one state (Kansas) had the same rate.
“While June state construction unemployment rates continue to indicate a relatively healthy level of construction employment, uneasiness that the economy might weaken over the remainder of this year and into 2026 is producing some hesitancy among builders and developers about proceeding with new projects,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.
“The impact of tariffs on building materials is already showing up in some prices. Meanwhile, uncertainty surrounding the level of tariffs on building materials going forward and how long they will be in place hangs over the industry. Further, the industry continues to face elevated interest rates and higher labor costs. Although most builders are loath to lay off workers at present, they are more cautious in their hiring.”
Recent Month-to-Month Fluctuations
In June, the national NSA construction unemployment rate declined 0.1% from May. Among the states, 29 had lower rates, 19 higher rates and two states (Arkansas and Kentucky) had the same estimated construction unemployment rates as in May.
The Top States
The five states with the lowest estimated NSA construction unemployment rates for June were:
1. South Dakota, 0.8%
2. North Dakota, 1.2%
3. New Hampshire, 1.3%
4. Montana and Oklahoma (tie), 1.5%
South Dakota, North Dakota, Montana and Oklahoma each posted their lowest June NSA estimated construction unemployment rate on record. New Hampshire had its third-lowest June rate on record. This was the third time that North Dakota’s June unemployment rate fell to 1.2%, its lowest June rate on record, matching that month’s rate for 2015 and 2022. South Dakota had the largest year-over-year drop in its rate among the states, down 1.7%. Montana followed with the second biggest decrease, down 1.5% (tied with Illinois).
The Bottom States
The five states with the highest June estimated NSA construction unemployment rates were:
46. Maryland, 4.6%
47. New Mexico, 4.8%
48. Connecticut, 5.2%
49. New Jersey, 8.5%
50. Rhode Island, 8.9%
New Mexico recorded its second lowest June rate on record, behind June 2022’s 3.7% rate. Rhode Island had the largest decrease in its monthly NSA estimated construction unemployment rate among the states, down 1.9%.
Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states. To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.
WRAPPING UP THE 2025 LEGISLATIVE SESSION
The legislature is set to return on Monday, August 18, 2025. This will mark the beginning of the end of the 2025 legislative session. Important legislative deadlines to note are August 29th which is the last day for fiscal committees to hear and report out bills. August 30th – September 12th will only be floor session. The last day of the 2025 legislative session will be September 12, 2025, bills looking to become law must be passed off their respective house floors by midnight. October 12, 2025, is the Governor’s last day to sign or veto bills passed in the 2025 legislative session.
Some important topics that must still be addressed in the next four weeks include:
• The financial impacts of HR1 on California’s budget
• California’s response to mid-decade congressional redistricting efforts
• The reauthorization of California’s “Cap and Trade” program, now re-named “Cap and Invest”
ABC of CA also has some legislative priorities still active for the last four weeks of the legislative session:
AB 338 (Solache): Support if Amended
AB 527 (Papan): Oppose Unless Amended
AB 538 (Berman): Oppose
AB 736 (Wicks): Support
AB 889 (Hadwick): Oppose
AB 1280 (Garcia): Oppose
SB 71 (Wiener): Oppose
SB 291 (Grayson): Support
SB 809 (Durazo): Oppose
The race for Governor sees some activity in recent days, as Lt. Governor Eleni Kounalakis drops out of the race. Some Sacramento insiders have speculated that this might make Rick Caruso, CEO of Caruso, reconsider entering the gubernatorial race.
OSHA SAFE + SOUND WEEK
This nationwide event recognizes the successes of workplace safety and health programs and offers information and ideas on how to keep America’s workers safe. This year, Safe + Sound Week will provide resources and activities for businesses on emergency preparedness and response that can be implemented at work or at home. Attached and on National Connections you will find assets for Safe + Sound Week 2025, Aug. 11-17. Additional information on the initiative can be found on OSHA’s website.
HPS MECHANICAL, INC. DRIVES INNOVATION WITH TESLA CYBERTRUCK EMPLOYEE OF THE QUARTER PROGRAM
HPS Mechanical, Inc., a trailblazer in plumbing solutions, is taking employee recognition to the next level with its new Employee of the Quarter program. Launching January 1, 2025, the program offers a groundbreaking reward: selected employees will drive a Tesla Cybertruck for two months, reflecting HPS’s focus on innovation, sustainability, and forwardthinking in both its projects and its people.
“Our team is the backbone of HPS,” said Scott DenHerder, President of HPS Mechanical, Inc. “We’ve always pushed the boundaries in plumbing with cuttingedge technology, from robotic layouts to automated prefabrication systems. We wanted to extend that same innovative mindset to how we recognize our employees, and the Tesla Cybertruck felt
like the perfect fit. It’s not just a truck—it’s a reflection of the forward-thinking culture we’re building.”
The Employee of the Quarter will be chosen based on performance, teamwork, and dedication to HPS’s mission. Nominations will come from peers and supervisors, with a committee selecting the recipient each quarter.
The Tesla Cybertruck, with its futuristic design and cutting-edge electric powertrain, represents the same bold innovation that drives HPS forward. Just as the Cybertruck is reshaping the future of transportation, HPS is pushing the limits in plumbing technology. By offering this iconic vehicle, HPS showcases its commitment to staying ahead of the curve in every aspect of the business.
Local and industry media outlets are invited to contact HPS Mechanical, Inc. for exclusive interviews and further details on this exciting program. HPS is setting a new standard in employee recognition, and this initiative is just the latest example of how the company continues to lead in both plumbing and innovation.
About HPS Mechanical, Inc.
Founded in 1959, HPS Mechanical, Inc. is a family-owned company that has grown into one of California’s leading providers of plumbing solutions. Serving residential, municipal, and large-scale commercial projects, HPS is committed to innovation, quality, and on-time delivery. With a focus on sustainable practices and cutting-edge technology, HPS continues to set new standards in the plumbing industry. For more information and full media kit with videos and photos, visit www.hpsmechanical.com/press
SEPTEMBER SUICIDE PREVENTION MONTH
Construction’s Unprecedented Suicide Crisis
The construction industry is facing an unprecedented crisis with construction workers dying by suicide and this tragedy that requires our attention. Data show that this industry had the second-highest rate of worker death by suicide, behind only the mining industry.
Four factors show a population uniquely at risk. One, construction workers are aging. Two, men, who make up nearly 85% of this workforce, are four times more likely to die by suicide than women. Three, construction is a natural career choice for veterans, who have valuable and transferable skills into the industry; veterans have a death by suicide rate of 22 per day. Four, younger construction workers are inundated by the influences and pressures of social media, which can affect self-awareness and increase peer pressure.
Ending this national tragedy requires addressing mental health in the construction industry and giving workers the tools they need to recognize and protect their emotional well-being. The U.S. workforce weekly spends many hours
at the workplace, making it a touchpoint for providing access to mental health resources. Across the construction sector, we must incorporate mental health and wellness as core business values.
As members of Associated Builders and Contractors, we are helping employers create safer cultures, provide education to identify and help those at risk, raise awareness about this crisis and normalize conversations around suicide and mental health. Other resources available to employers include free suicide prevention training, the Suicide Prevention Lifeline call center, the Crisis Text Line and the Construction Industry Alliance for Suicide Prevention
Employers can also implement resources for total human health, which incorporates a whole-person approach to engage a person’s body, mind, heart and soul; psychological safety that is respectful of all workers; acknowledgement of the risk of distraction and impairment; and responding with appropriate care.
Incorporating total human health into company cultures will help reach the goal of creating a zero-suicide industry.
WHAT IS A PAC?
POLITICAL ACTION COMMITTEE (PAC)
A political committee organized for the purpose of raising and spending money to elect and defeat candidates. Most PACs represent business, labor or ideological interests.
GENERAL BENEFITS OF CONTRIBUTING TO A PAC
• Amplified Influence: By pooling resources with other ABC CA members, your contribution becomes part of a larger sum that can be strategically deployed to support candidates or advocate for specific causes, like fighting statewide PLA fights.
• Targeted Support: PACs, particularly those connected to specific organizations, often focus their efforts on supporting candidates and policies directly impacting their interests. This allows you to support specific issues or politicians who support open and fair competition.
• Increased Visibility & Access: Contributions can help ABC CA gain access to elected officials and policymakers, providing the opportunity to share the ABC CA perspectives and advocate for specific ABC CA issues.
• Strategic Allocation of Funds: PACs can strategically distribute funds to maximize impact. They can:
o Donate directly to campaigns to help candidates reach voters through advertising, events, and outreach efforts.
o Fund independent expenditures, like advertising campaigns, to advocate for or against specific candidates or issues.
o Finance voter education and get-out-the-vote (GOTV) initiatives to increase voter turnout and impact election outcomes.
SPECIFIC BENEFITS OF CONTRIBUTING TO ABC CA’S PAC
ABC CA PAC funds have been used to:
• Defeat the passage of SB 419 (Stern): a bill that would have required all oil and gas workers to be “skilled and trained.” ABC Central California members would have lost jobs if this bill had been signed into law.
• Secured a veto for SB 984 (Wahab): this bill which was modeled after President Biden’s executive order, would have mandated project labor agreements on state construction projects over $35 million.
• Helped to elect:
o Assembly Member Jeff Gonzalez
o Assembly Member Suzette Martinez Valladares
o Assembly Member Josh Hoover
o Assembly Member Alexandra Macedo
