Construction Hiring Remains Sluggish in May, Says ABC

Trade group reports slower job starts than same period a year earlier

ABC reports lower job creation in construction in May. — Anirban Basu, chief economist for Associated Builders and Contractors, says construction job openings rose slightly in May but remain well below 2024 levels.
Image: Courtesy of A1A

The construction industry ended May with 245,000 job openings, according to an analysis by Associated Builders and Contractors of U.S. Bureau of Labor Statistics Job Openings and Labor Turnover Survey data (JOLTS). Industry openings increased by 3,000 from April but decreased by 130,000 from May 2024.

“Industrywide labor demand continued to be subdued in May,” said ABC chief economist Anirban Basu. “The year‑to‑date construction hiring rate is lower than in any year since the start of the data series in 2000. Job openings are down about 35% year over year, and layoffs remain historically uncommon. Of course, it’s unclear how immigration‑policy uncertainty is affecting these data. To the extent that a decline in the hiring of undocumented workers is not reflected, the industry could be significantly weaker than it appears.”

“Despite that possibility, contractors remained optimistic in May,” Basu said. “More than 55% expect their staffing levels to increase during the second half of 2025, according to ABC’s Construction Confidence Index.”