U.S. construction firms are treading cautiously in the labor market as economic headwinds persist, with new federal data showing that job openings in the industry fell modestly in April. Despite a drop of 3,000 available construction positions, the real story lies in the continued stagnation of labor movement—indicating that employers are holding tightly to the skilled workers they already have.

According to the Bureau of Labor Statistics' April Job Openings and Labor Turnover Survey (JOLTS) report, there were 248,000 construction job openings on the last day of the month. This figure reflects a slight decline from March and represents a 24% decrease from the same time in 2024, when labor demand was significantly higher.

At the same time, key metrics like hires, quits, and layoffs remained low by historical standards, signaling that both employers and workers are reluctant to make moves in today’s uncertain economy.

A Cautious Climate

“Despite broader economic uncertainty and a slowdown in construction activity, firms appear focused on retention, a clear sign of how valuable skilled labor remains,” said Macrina Wilkins, senior research analyst at the Associated General Contractors of America (AGC).

Wilkins’ remarks underscore a wider industry trend that has emerged throughout 2024—retention over recruitment. Many contractors appear to be prioritizing workforce stability over aggressive hiring in a market where inflationary pressures, elevated interest rates, and backlog concerns continue to weigh on confidence.

The April data builds on a similar pattern observed in March, when labor churn—movement between jobs or out of the workforce—was also notably subdued.

“Construction labor market churn remained unusually slow in April,” said Anirban Basu, chief economist for the Associated Builders and Contractors (ABC). “The rates of hires, layoffs and quits are all low by historical standards, and industrywide job openings have fallen 45% since reaching an all-time high in December 2023.”

Job Openings Rate Hits 4-Year Low

According to Wilkins, the total job openings rate across all sectors fell to 2.9% in April, a notable decline from 3.8% a year earlier. That marks the lowest rate for April since 2020, when the pandemic brought construction activity to a near halt.

Interestingly, the layoff rate ticked up slightly to 2.1% in April, up from 1.9% the year before. However, the number remains low enough to suggest that employers are still cautious about cutting staff.

“These figures suggest that while contractors continue to slow hiring and hold off on filling new positions, they remain hesitant to part with existing workers,” Wilkins added.

Mixed Signals for the Road Ahead

Despite the downturn in job openings and low churn rates, there may be signs of optimism for the latter half of the year. “ABC data indicates two in three members intend to increase their hiring in the next six months,” Basu noted, pointing to potential rebounds if project pipelines stabilize.

Still, the overall labor environment reflects a sector in a holding pattern—uncertain about demand but unwilling to risk losing the highly trained talent it already has. For workers, this could mean fewer opportunities to switch jobs or negotiate for higher pay, while for employers, it signals a need to balance workforce retention with long-term planning.

As the summer construction season begins, eyes will be on whether this labor freeze begins to thaw or persists into the second half of the year.

Originally reported by Zachary Phillips in Construction Dive.