US contractor hiring optimism persists despite 45% drop in job openings

Graph courtesy Associated Builders and Contractors

That figure marks a 3,000-position decrease from March and a 45% drop since December 2023, when openings peaked at a record high.

Despite the slowdown, contractor sentiment remains relatively upbeat. In its latest Construction Confidence Index, US-based construction trade group Associated Builders and Contractors (ABC) reported that 57% of contractors expect to increase staffing levels over the next six months.

Tariff and employer tax fears hit US construction employment in April Employment increases in just over half of metro areas, amid demand for certain types of project

“Construction labour market churn remained unusually slow in April,” said Anirban Basu, ABC’s chief economist. “The rates of hires, layoffs and quits are all low by historical standards.”

The divergence between falling openings and rising hiring expectations highlights a potential disconnect between sentiment and current conditions. Some contractors may be planning to hire for future projects that have not yet advanced to the build phase, while others could be holding back on job postings due to economic uncertainty or delayed starts.

Analysts suggest the disparity could also reflect cautious labour hoarding strategies, as firms aim to retain skilled workers ahead of a potential rebound in activity later in 2025.

Will US immigration policy impact construction hiring?

At the same time, stepped-up immigration enforcement may be contributing to the reduction in job postings.

US Immigration and Customs Enforcement (ICE) has carried out a series of high-profile raids at construction sites in Florida, Texas, and Georgia in recent months. While official labour data does not track immigration status, contractors in high-risk jurisdictions may be less inclined to advertise or fill roles through traditional channels due to legal exposure.

ICE raids hit US construction sector as immigration crackdown escalates US ICE officers are raiding construction sites and arresting undocumented workers

Additionally, legal migrant workers may also be less inclined to apply for jobs or show up for work in these regions, as additional ICE raids are likely in the future.

Combined with broader economic hesitation, these enforcement actions may be dampening labour market activity even as contractors report strong intentions to expand staff in the near term.

Table courtesy Associated Builders and Contractors