Hiring in the construction sector has slowed to its lowest rate ever recorded, as industry job openings fell sharply last month, according to an analysis by Associated Builders and Contractors (ABC) of U.S. Bureau of Labor Statistics data released Tuesday.

At the end of March, there were 248,000 job openings in construction — a drop of 38,000 from the previous month and 90,000 fewer than at the same time last year, representing a steep 27% year-over-year decline. Total hires across the industry also shrank by 10% compared to last year, signaling deepening concerns about demand.

“Construction job openings continued to trend lower in March, a clear sign of slowing industrywide demand for labor,” said ABC Chief Economist Anirban Basu in the release. “Hiring activity was particularly weak for the month, with the 302,000 hires equivalent to just 3.6% of industrywide jobs — the lowest rate ever recorded.”

According to Basu, the slowdown is not accompanied by high turnover. “With quitting and layoff activity also subdued for the month, construction labor force churn is virtually nonexistent,” he said.

Despite these numbers, there is still some optimism. “While a majority of contractors surveyed in March expect to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, tariffs and other economic headwinds may blunt hiring expectations in the months to come,” Basu warned.

A number of large-scale projects are facing delays or cancellations, adding further strain. Chip giant Intel has postponed construction on its flagship Ohio One semiconductor plant, citing escalating construction costs and a drop in chip demand. Similarly, Microsoft recently shelved several U.S. data center projects, pausing three planned developments in Ohio, including a $1 billion site near Columbus, as well as projects in Illinois, North Dakota, and Wisconsin, Bloomberg reported.

While some new onshoring projects are launching due to former President Donald Trump’s tariff policies, uncertainty across financial markets and supply chains is causing many developers and owners to pull back. Analysts warn that unless broader economic conditions improve, the construction sector could face continued stagnation throughout the year.

Originally reported by Jennifer Goodman in Construction Dive.