Construction Hiring Remains Sluggish

Construction Hiring Remains Sluggish

Hiring in the U.S. construction industry continues to hover near 20-year lows, as slowdowns across several project categories weigh on labor demand, according to a recent analysis of federal data by the Associated Builders and Contractors.

The trade group reported 231,000 open construction positions on the last business day of January, down from 245,000 in December and slightly below the 232,000 openings recorded a year earlier.

Despite the slowdown, contractors remain optimistic that staffing levels will grow over the next six months. However, that confidence has persisted for several years even as hiring activity has remained subdued, said Anirban Basu, the group’s chief economist.

In a separate report, the association noted a modest rebound in project backlogs in February—a key indicator of future work—reaching an average of 8.1 months. This represents a 0.1-month increase from January, though it is still 0.2 months below levels seen a year ago.

Backlogs have declined compared to last year in several segments, particularly in commercial and institutional construction, suggesting continued unevenness across the industry.