US construction firms pull back on hiring amid headwinds

Graph courtesy Associated Builders and Contractors

The decline represents a drop of 115,000 openings from July and 116,000 fewer than the same time last year.

ABC’s analysis is based on the BLS Job Openings and Labor Turnover Survey (JOLTS), which counts any unfilled position for which an employer is actively recruiting. The data highlights a sharp slowdown in construction hiring, a trend mirrored by recent declines in construction spending and employment.

ABC chief economist Anirban Basu said, “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.”

He went on to note that contractor sentiment remains high for the near future, but acknowledged the industry is not in prime position.

“Contractors remain relatively optimistic about the next six months, according to ABC’s Construction Confidence Index,” Basu said. “Yet, recent data has made it abundantly clear that the construction industry is currently contracting.”

The decline in openings comes despite a historically tight labour market, signalling that contractors are pulling back amid broader economic uncertainty, leading to the tepid assessment.

Table courtesy Associated Builders and Contractors