Construction Job Openings Hit 10-Year Low

The construction industry is facing its weakest hiring appetite in nearly 10 years, with new federal data showing a sharp pullback in open positions.

According to the Bureau of Labor Statistics, the sector recorded just 188,000 open jobs at the end of August — a staggering decline of nearly 38% both month over month and year over year. Only 2.2% of construction jobs were unfilled, marking the lowest job opening rate since the mid-2010s and a steep drop from 3.5% in July.

Economists say the data points to a cooling labor market within the sector, even as other industries maintain steadier hiring conditions.

“While this data series tends to be volatile on a month-to-month basis, the precipitous decline in job openings aligns with other indicators like construction spending and employment, both of which have fallen in recent months,” said Anirban Basu, chief economist for Associated Builders and Contractors.

Despite the slowdown, the dip may not apply evenly across all sectors of construction. The BLS does not separate residential from commercial construction in this report, making it difficult to pinpoint which areas are tightening more aggressively.

Macrina Wilkins, senior research analyst for the Associated General Contractors of America, noted that the overall labor picture remains mixed.

“This mix of signals highlights a labor market that remains tight but is cooling in some respects. Contractors are still bringing on workers at a steady pace, and quits are slightly higher than a year ago, suggesting some mobility among workers,” Wilkins told Construction Dive in an email.

Even with job postings dropping, worker movement continues. The number of quits rose by 19,000 year over year, up 15%, with the quit rate increasing from 1.5% to 1.8%. That combination suggests workers still see opportunities elsewhere, even as new postings slow.

Wilkins added:

“At the same time, fewer new job postings point to a slowdown in demand, while layoffs are only modestly higher. Together, these figures show an industry still competing for skilled labor but with signs of easing pressure compared to last year.”

A Sharp Decline Compared to the Overall Labor Market

Construction stands out from the broader U.S. employment landscape. Across all industries, both the number and rate of job openings were largely unchanged in August, the BLS reported. Construction is one of the only sectors with a significant, sudden drop in open roles.

The contraction coincides with recent declines in construction spending and hiring — indicators that suggest projects may be slowing or reaching completion without new starts to absorb labor capacity.

Government Shutdown May Further Complicate Data

Just as the industry seeks clarity, an ongoing federal government shutdown could delay labor market reporting. The Department of Labor announced on Sept. 26 that the BLS would suspend operations during the shutdown.

While Friday’s employment report was likely finalized in advance, further data releases might be paused. That could leave contractors, economists, and policymakers operating with limited visibility during a critical moment.

For now, experts see this contraction as potentially short-lived but worth watching. Factors like interest rates, infrastructure funding, and private development slowdowns are all influencing hiring plans — and sentiment may shift quickly if conditions stabilize.

Originally reported by Zachary Phillips in Construction Dive.