Construction employment showed signs of renewed momentum at the close of 2025, even as economists cautioned that the broader hiring environment remains fragile. New federal data indicates more contractors were seeking workers in December than at any point since midsummer, yet long-term demand continues to trail pre-pandemic patterns.
According to the Bureau of Labor Statistics, 292,000 construction positions were open in December for which employers were actively recruiting. That figure represented an increase of 8,000 jobs from November and 87,000 more than a year earlier. Overall, 3.4% of all construction jobs remained unfilled during the final month of 2025.
.jpg)
Industry analysts say the uptick is encouraging but does not fully offset the cautious approach many firms have taken in recent quarters amid economic uncertainty and uneven project pipelines.
Associated Builders and Contractors Chief Economist Anirban Basu said the numbers suggest the labor market may be stabilizing after a sluggish autumn.
“This release paints a slightly more upbeat picture of the construction industry’s labor force dynamics,” Basu said in a release.
The hiring rate reached 4.2% in December, surpassing the job openings rate of 3.4%, according to Macrina Wilkins, director of market insights for the Associated General Contractors of America. That gap typically indicates employers were able to fill roles more effectively than in prior months.
However, experts warned against interpreting the data as a full recovery.
“Despite this improvement, demand for construction workers remains subdued, as has been the case for several quarters. Fewer construction workers were hired in 2024 and 2025 than in any two-year period since 2015-2016,” Basu said.
Wilkins described the labor market as still “cautious,” noting that layoffs ticked up from 1.7% to 2.1%.
“The data point to continued workforce stability alongside gradual improvement in hiring,” she said.
.jpg)
Additional analysis from ABC showed the overall U.S. construction unemployment rate fell slightly to 5% in December, down 0.2% from the previous year. Most states reported lower unemployment than in 2024, and many were below pre-pandemic levels.
Even so, contractors continue to battle external pressures. Bernard Markstein, president and chief economist of Markstein Advisors, outlined several challenges weighing on the sector.
“The construction industry continues to contend with weaker demand from the headwinds of tariffs and supply disruptions pushing building materials prices up, increasing insurance costs and an uptick in immigration enforcement contributing to a shortage of skilled construction workers, which has added to pressure to raise wages and salaries,” Markstein said in the release.
Looking ahead, ABC estimates the industry will require 350,000 net new workers in 2026 to meet projected demand. While significant, that gap is narrower than in previous years, suggesting the imbalance between staffing needs and available labor may be slowly easing.
Recruiters and trade groups say the latest figures highlight the need for sustained investment in training and retention. Many firms are expanding apprenticeship programs, raising wages and experimenting with flexible schedules to attract talent.
Analysts also expect infrastructure spending and manufacturing projects to support hiring through 2026, though higher interest rates and material costs could limit growth. For now, December’s rebound offers cautious optimism that the worst of the slowdown may be fading.
Originally reported by Zachary Phillips, Editor in Construction Dive.
.png)
