Construction Job Openings Surge to 306,000, Labor Shortages Deepen

The construction industry is grappling with a sharp spike in unfilled positions as labor shortages intensify under heightened immigration scrutiny. According to the Bureau of Labor Statistics (BLS), the number of open construction jobs soared 26% month over month in July, reaching 306,000 unfilled roles — the highest level recorded in more than a year. That figure was also 33.6% higher than July 2024.

At the same time, quits dropped by 52%, a nine-year high, while layoffs spiked to their highest level since early 2023, according to Anirban Basu, chief economist for Associated Builders and Contractors (ABC).

Experts Link Openings to Immigration Crackdowns

“The July jobs opening level was the highest in over a year,” Basu said. But he noted that “given the ongoing decline in nonresidential construction spending, however, that increase is likely attributable to immigration policy and its effects on the industry’s labor force rather than any increases in the demand for construction workers.”

Tracking the true impact of immigration policy is challenging, as undocumented or foreign-born workers are harder to capture in official data. Still, the industry has long relied on immigrant labor, making the recent policy changes particularly disruptive.

Layoffs, Quits, and Market Imbalance

Basu cautioned that rising layoffs coupled with falling quits point to “an alarming deterioration in industrywide labor demand.” Workers are staying put, he explained, as job security becomes more valuable in a volatile environment.

Macrina Wilkins, senior research analyst at the Associated General Contractors of America (AGC), highlighted the broader workforce imbalance:

“This tension underscores how difficult it remains for firms to bring on qualified workers, even as demand persists,” Wilkins said, noting that high layoffs combined with reduced quits reflect an uneven labor market.

Surveys Show Widespread Struggles

The BLS data aligns with a recent AGC and NCCER survey that revealed 92% of contractors reported challenges filling open positions, with nearly half citing project delays directly tied to worker shortages.

Wilkins added that not all listed openings represent immediate hiring needs: “Firms may list openings without immediately filling them if projects have not yet received the go-ahead, which helps explain the gap between rising job postings and stagnant hiring.”

Political Fallout and Volatility of Data

The reliability of federal jobs data itself has become a flashpoint. Last month, President Donald Trump fired BLS Commissioner Erika McEntarfer after a report included revised numbers from prior months, sparking controversy.

Economists, however, emphasized that revisions are standard as more information becomes available. Basu noted that the data “can be volatile from month to month,” underscoring the importance of examining long-term labor trends rather than reacting solely to short-term fluctuations.

Looking Ahead

While openings surged in July, the combination of reduced quits, higher layoffs, and slower project approvals points to a complex labor market that is being squeezed from multiple directions. Immigration policy remains a central factor in labor availability, and unless conditions shift, contractors may continue to face challenges hiring the workforce needed to deliver projects on time and on budget.

Originally reported by Zachary Phillips in Construction Dive.