Construction Job Openings Edge Up in June Despite Hiring Slowdown

The U.S. construction industry posted an increase in job openings in June, but hiring momentum remains muted, particularly in the residential sector. According to the latest U.S. Bureau of Labor Statistics (BLS) data analyzed by Associated Builders and Contractors (ABC), contractors had 246,000 open positions at the end of June—up by 14,000 from May. However, the figure is still 39,000 fewer than in June 2024, reflecting a broader slowdown in labor demand.

While the rise in openings may indicate that contractors are preparing for upcoming projects, the overall share of unfilled positions is lower compared to recent years. Industry experts note that companies remain cautious in onboarding new employees.

“Hiring during the first half of 2025 was the slowest start to a year we've seen since 2000,” said ABC Chief Economist Anirban Basu. “While layoffs remain historically low, the data suggests that demand for labor is softening, especially in the residential sector.”

The residential slowdown comes amid tighter housing market conditions, rising construction costs, and a pullback in new homebuilding permits. By contrast, nonresidential construction continues to show resilience, buoyed by infrastructure projects, industrial facility expansions, and energy sector investments.

ABC’s Construction Confidence Index shows that fewer than 14% of surveyed contractors expect to reduce staffing during the second half of 2025. This level of confidence suggests that commercial and industrial builders may continue to expand their teams to meet demand for large-scale projects, even as homebuilders tap the brakes.

Economic analysts note that the mixed hiring landscape reflects broader macroeconomic trends, including fluctuating interest rates, supply chain stability, and regional differences in construction activity. States with major infrastructure investments—often supported by federal funding—are seeing stronger employment prospects than those heavily reliant on residential growth.

Looking ahead, Basu said the labor market’s trajectory will depend on whether the recent uptick in project backlogs translates into sustained hiring. “If financing conditions improve and material costs remain stable, we could see hiring pick up by early 2026, particularly in the nonresidential segments,” he added.

For now, the construction industry enters the second half of 2025 with a cautiously optimistic outlook—balancing selective hiring with the need to remain competitive in an evolving labor market.

Originally reported by Allyson sherrier in For Construction Pros.