The U.S. construction sector is experiencing a sharp slowdown, with job openings in August 2025 plunging to 188,000, a 38% decline from July and a 38% drop from August 2024, according to Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics data.
“This is the lowest job openings rate in nearly a decade and shows the sector is contracting,” said ABC Chief Economist Anirban Basu. The decline underscores mounting pressures on construction activity nationwide, including labor shortages and reduced project pipelines.
Meanwhile, the number of construction workers leaving their jobs rose sharply. 146,000 workers quit in August, up 62% from July’s 90,000 quits and 15% higher than August 2024’s 127,000.
A recent survey by the Associated General Contractors of America (AGC) reinforces the challenges: 45% of firms report project delays due to labor shortages, while 28% are impacted by immigration enforcement actions initiated by the Trump administration since January.
“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,” Basu added.
Despite the contraction, contractors show cautious optimism. The ABC Construction Confidence Index indicates that many firms anticipate modest improvement over the next six months, but the overall trend confirms the industry is currently shrinking.
Experts warn that the slowdown comes at a time of rising material costs, persistent labor shortages, and complex regulatory challenges, affecting commercial, residential, and infrastructure projects alike. Analysts also note that if labor availability does not improve, project delays and cost overruns could escalate, further stressing contractors and owners.
“With labor shortages continuing to hit every sector, the construction industry must adapt by investing in training, technology, and innovative hiring practices,” Basu said. “Otherwise, the current contraction may persist and affect the broader economy.”
The latest data is a stark reminder that while construction remains critical to U.S. economic growth, structural challenges—including workforce availability, policy impacts, and supply chain constraints—pose ongoing risks to the sector’s stability.
Originally reported by Rod Sweet in Global Construction Review.
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