Dive Brief:
- Construction industry job openings decreased by 38,000 last month even as hiring in the sector slowed to its lowest rate on record, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics released Tuesday.
- The construction industry had 248,000 job openings on the last day of March, down by 90,000 from the same time last year, a 27% decrease. The total number of hires also decreased YOY, falling by 10%.
- “Construction job openings continued to trend lower in March, a clear sign of slowing industrywide demand for labor,” said ABC Chief Economist Anirban Basu in the release. “Hiring activity was particularly weak for the month, with the 302,000 hires equivalent to just 3.6% of industrywide jobs — the lowest rate ever recorded.”
Dive Insight:
With quitting and layoff activity also subdued for the month, construction labor force churn is virtually nonexistent, Basu said.
“While a majority of contractors surveyed in March expect to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, tariffs and other economic headwinds may blunt hiring expectations in the months to come.”
Although some new onshoring development is getting underway in response to President Donald Trump’s latest round of tariffs, many developers and owners are pulling back on new projects due to the uncertain economic conditions.
Chip manufacturer Intel has delayed construction of its Ohio One semiconductor plant, largely due to rising construction costs and weaker-than-expected chip demand. Microsoft, likewise, recently axed several data center projects in the U.S., citing a slowdown in regional demand for cloud services.
The tech giant paused three Ohio data center developments, including a $1 billion project outside Columbus, and has also delayed builds in Illinois, North Dakota and Wisconsin, according to Bloomberg.
