Construction Industry Sees Job Openings Reach 10-Month High in May
Key Highlights
- Construction industry had 298,000 job openings at the end of May, the highest in 10 months
- The construction hiring rate dropped sharply to 3.5%, matching February's low, indicating weaker labor demand
- Rising layoffs and a falling quit rate suggest a slowdown despite industry optimism about staffing growth
WASHINGTON, DC — According to data from the US Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS), the construction industry had 298,000 job openings on the last day of May. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting.
Industry job openings increased by 32,000 last month and are up by 76,000 from the same time last year.
“Construction job openings rose to a 10-month high in May,” said ABC Chief Economist Anirban Basu. “Unfortunately, that increase likely reflects exceptional demand for certain occupations critical to data center buildouts, like electricians, rather than increased industrywide demand for labor.
“The construction hiring rate fell sharply in May and, at 3.5%, matches February’s all-time low," said Basu. "Rising layoff activity and a falling quit rate also suggest that demand for construction labor weakened in May. Despite these signs, contractors remain optimistic about growing their staffing levels, according to ABC’s Construction Confidence Index.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.