Construction Job Opening Rate Falls to Lowest Level in Nearly a Decade
The construction industry had 188,000 job openings on the last day of August.
 |
 |
Analysis of the federal data by the Associated Builders and Contractors and Associated General Contractors of America indicates that the construction industry job openings decreased by 115,000 last month and are down by 116,000 from the same time last year.
On a year-to-year basis, the totals are a 38% decline and represent the lowest total since 2017.
The economic and jobs-related data was released just days prior to the government shutdown.
“This decline suggests even fewer areas are likely to have construction employment increases in the near future,” said Ken Simonson, AGC’s chief economist.
He pointed out that prolonged federal shutdown could also impact construction employment if public works projects are suspended or fail to get needed approvals to start because federal officials are unavailable to sign off.
ABC Chief Economist Anirban Basu added that the decline seems to align with other indicators in construction spending and employment, both of which have gone down in recent months.
However, per ABC’s Construction Confidence Index, contractors continue to remain optimistic for the next six months.
“Recent data has made it abundantly clear that the construction industry is currently contracting,” Basu said.
For the first time since 2021, fewer than half of the nation’s metro areas added construction jobs between August 2024 and August 2025. Only 177 metro areas or 49% added construction employees between August 2024 and August 2025
Simonson noted that many private-sector developers appear to be putting projects on hold amid rising prices caused by tariffs, workforce shortages and higher interest rates.
“Construction employment has stalled or retreated in more and more areas as owners pull back on projects in the face of higher costs,” he said. “Workforce shortages, tariffs and higher interest rates are inflating construction costs and schedules to the point where many projects no longer appear to make sense to developers.”
Both associations were urging Congress to resolve the spending dispute to avoid further impacts on public works and infrastructure projects.
CONTRACTOR SUPPLY MAGAZINE
The August/September 2025 issue of Contractor Supply magazine is here!
Our cover story, Forged in Friendship and Fasteners, Under the leadership of Terry Albrecht, Packer Fastener is built on people, not jut nuts and bolts in Green Bay, Wisconsin.
Plan your trip to the 2025 STAFDA Convention and Trade Show in Phoenix, Arizona with our convention planner.
Also in this issue are Industry Updates on Corded Electric Tools; Generators and Power Stations; and Saw Blades and Cutting Tools.
This digital edition, sponsored by BECK AMERICA Inc., is fully searchable and contains live links to every advertiser and new product listing. Click away!
| Read the Articles Read the Digital Edition |
