Dive Brief:
- Construction job openings dropped by 3,000 positions in April as labor churn in the sector slowed, according to the most recent Bureau of Labor Statistics data.
- The industry counted 248,000 open jobs that employers actively sought to fill on the last day of the month, essentially unchanged from the month before, but about 24% fewer than the number of open positions at the same time last year..
- Meanwhile, the rate of hires, quits and layoffs remained historically low, economists said, indicating the value companies put on keeping skilled labor in their ranks, but also the anxiety surrounding a potential economic slowdown.
Dive Insight:
“Despite broader economic uncertainty and a slowdown in construction activity, firms appear focused on retention, a clear sign of how valuable skilled labor remains,” said Macrina Wilkins, senior research analyst for the Associated General Contractors of America.
The virtually nonexistent labor turnover in April builds on a similar trend seen in March.
“Construction labor market churn remained unusually slow in April,” said Anirban Basu, Associated Builders and Contractors chief economist. “The rates of hires, layoffs and quits are all low by historical standards, and industrywide job openings have fallen 45% since reaching an all-time high in December 2023.”
The total job openings rate, meanwhile, fell to 2.9% in April, compared to 3.8% of all jobs a year earlier. That marked the lowest April reading since 2020, according to Wilkins. The layoff rate rose to 2.1%, a modest increase from 1.9% in April 2024.
“These figures suggest that while contractors continue to slow hiring and hold off on filling new positions, they remain hesitant to part with existing workers,” Wilkins said.
Indeed, Basu said ABC data indicates two in three members intend to increase their hiring in the next six months.
