- The construction sector saw a dramatic 115,000-job drop in openings in August, per BLS data, but demand for skilled workers remains high.
- Economic uncertainty, regulatory challenges, and elevated debt costs have slowed new developments, but project backlogs are still keeping contractors busy.
- Larger firms like Turner Construction are thriving on megaprojects, while smaller contractors feel the squeeze from fewer new starts.
Openings Drop, Labor Crunch Remains
Per Bisnow, the construction industry logged 188,000 job openings in August, down sharply from 303,000 the previous month, according to the Bureau of Labor Statistics.
While that could suggest a softening labor market, insiders say it’s more a reflection of paused projects than improved hiring conditions.
“The whole economy is in a holding pattern,” said Zack Fritz of Associated Builders and Contractors (ABC). “Nobody’s quitting, nobody’s hiring… Projects aren’t going forward.”
A deeper look shows job openings have generally stagnated this year, averaging around 250,000—well off their December 2023 peak of 439,000.
Job Numbers Miss the Full Picture
Despite fewer advertised jobs, hiring remains tough. Nearly 91% of firms surveyed by the Associated General Contractors of America (AGC) say they’re still struggling to fill positions, especially in specialized roles. Only 9% report that hiring has gotten easier.
Several factors are contributing to the disconnect:
- High retirement rates among skilled tradespeople.
- Unqualified applicants, with 57% of firms citing skill gaps.
- Project delays and cancellations due to trade policy uncertainty and regulatory challenges.
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Work Backlogs Shift, Not Shrink
ABC reports an 8.5-month average backlog of construction work as of August. While that’s slightly down from July, it’s up year-over-year. And it’s not evenly distributed.
- Firms with less than $30M in revenue saw a dip in backlogs.
- Large contractors (over $100M revenue) now hold 13.5-month backlogs, the highest in two years.
Heavy infrastructure and industrial projects, often government-funded, are offsetting slowdowns in commercial real estate.
Big Contractors Thrive on Megaprojects
Turner Construction, the nation’s largest contractor, exemplifies the industry’s shift toward large-scale public and infrastructure projects. CEO Abrar Sheriff said Turner has seen 25–30% growth this year, driven by billion-dollar contracts like:
- A $2.4B NFL stadium for the Cleveland Browns.
- A $2.1B stadium for the Tennessee Titans.
- A new medical center in Memphis and airport work at Dulles International.
“We can’t grow fast enough or build fast enough,” Sheriff said. “The only thing that will hold us back is finding the right workforce.”
Small Firms Hire, If Projects Launch
Even with fewer new starts, 62% of AGC members plan to expand headcount over the next year. But those ambitions depend on owners greenlighting new developments.
For now, many remain cautious. Nonresidential starts dropped 30% in July year-over-year, as inflation, debt costs, and the threat of recession keep investors sidelined.
“The industry is finding the market softer than it had been,” AGC’s Ken Simonson said. “Most firms still expect to add headcount, but right now, many projects are on pause.”
Looking Ahead
While job openings may remain volatile, the underlying labor shortage is far from resolved. The construction sector’s future hiring will depend on project pipelines firming up, and until then, the mismatch between demand and availability of skilled workers will likely persist.
