Residential Real Estate News
U.S. Construction Hiring Rate Drops to Lowest Levels in 5 Years
The construction industry had 217,000 job openings as of December 31, 2024, according to an analysis by Associated Builders and Contractors (ABC) based on data from the U.S. Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS). JOLTS defines a job opening as any unfilled role for which an employer is actively recruiting.
The number of job openings in the industry dropped by 55,000 last month and is down by 217,000 compared to the same period last year.
"Construction industry hiring slowed to an unprecedented pace in December 2024," said ABC Chief Economist Anirban Basu. "The hiring rate fell to 3.6% for the month, the lowest level on record outside of April 2020, when the pandemic significantly affected the labor market. This slowdown directly reflects weakened demand for labor, with industry wide job openings declining by exactly 50% over the past year."
Despite these indicators of softening demand, Basu noted that layoffs and quits remain historically low. He added, "This weak demand for construction labor may be attributed to cold weather and reduced activity during the transition between presidential administrations. However, according to ABC's Construction Confidence Index, most contractors plan to increase staffing levels over the next six months, suggesting hiring could rebound during the first half of 2025."
