Construction labor demand continued its downward slide in October, with job openings falling to what analysts called an “extraordinarily low” level. According to a new Associated Builders and Contractors review of federal data, the industry is facing one of its most muted hiring environments in years—even as contractors maintain optimism for the months ahead.
The latest Bureau of Labor Statistics report shows construction employers reported 213,000 job openings on the final day of October. That figure marks a decline of 18,000 openings from September and a year-over-year drop of 36,000. In BLS methodology, job openings include any unfilled position for which employers are actively recruiting.
The decrease wasn’t limited to openings alone. Hiring also contracted sharply, signaling that construction activity cooled significantly throughout 2025. Analysts note that while hotspots such as data center construction continue to surge, broader market segments—including commercial and certain public-sector categories—have slowed.
The October reading extended a months-long trend of weak labor demand. Throughout 2025, openings have hovered at subdued levels, reflecting broader hesitation around project starts, elevated financing costs, and lingering supply chain unpredictability.
ABC Chief Economist Anirban Basu said the latest numbers reinforce what contractors have been experiencing for much of the year. “The number of open, unfilled construction jobs remained extraordinarily low in October,” Basu said. “The construction industry has been in a state of contraction throughout the majority of 2025.”
He noted that the job openings report serves as the clearest real-time indicator of labor conditions because several other major federal releases are still delayed following the recent government shutdown. More comprehensive economic data will not be available until later this month.
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In an unusual contrast to the current slowdown, contractors continue to signal confidence about near-term opportunities. Firms across multiple regions are planning workforce expansions heading into early 2026, betting on an uptick in project approvals, improved financing conditions, and movement on long-delayed public works initiatives.
“Despite what has been a fairly dismal stretch of industry data, contractors remain upbeat about their hiring intentions over the next six months,” Basu said.
Builders are preparing for a potential rebound driven by megaproject verticals—data centers, semiconductor plants, clean energy manufacturing—as well as expected federal infrastructure spending that has been slow to deploy but is anticipated to accelerate next year.
Industry economists say the coming months will be critical. If hiring intentions materialize, the sector could shift out of contraction in early 2026. However, if labor demand remains weak, the slowdown may persist longer than expected, adding pressure to already strained workforces and complicating contractors’ ability to meet future demand spikes.
While the October data paints a stark picture of the current environment, industry leaders emphasize that fundamentals—backlog levels, project pipelines, and long-term demand drivers—still point to sustained construction needs, particularly in infrastructure and tech-driven building sectors.
Originally reported by Sebastian Obando in Construction Dive.
