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Dive brief:
- The slow construction labor market continued through the end of the first quarter of 2026. The industry accounted for 224,000 unfilled jobs on the last day of March, according to a report from the Bureau of Labor Statistics on Tuesday.
- This was 23,000 more open jobs than in February and 54,000 fewer vacancies than in March 2025, a 19% decrease. All told, 2.6% of all construction jobs remained open at the end of the month, a rate that has been essentially flat since early 2026.
- Construction economists say the lack of job turnover indicates the soft nature of construction demand in many sectors to start the year.
Diving knowledge:
“The industry labor market continues to be defined by a total lack of turnover,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a statement. “Construction sector hiring rebounded from February’s all-time low but it remains extremely smooth”.
In fact, resignations were flat in March at 139,000, or roughly 5,000 more than in February. Meanwhile, employers laid off or laid off 145,000 workers in March, about 5,000 fewer than in February, a 3% drop.
“While contractors remain confident that their staffing levels will improve this year, according to ABC’s Construction Confidence Index, this stagnant labor market dynamic suggests that the industry remains in a holding pattern, which will not emerge until economic uncertainty subsides,” Basu said.
The low rate of layoffs has continued as a trend as builders hold on to workers while demand has moderated, said Macrina Wilkins, director of market information for the Associated General Contractors of America. March 2024 was the last time job offers and layoffs “crossed,” he said. Since then, openings have declined while layoffs have remained low.
“The decline in openings is the clearest sign that demand for additional workers has softened. Hiring is holding steady, but there’s no sign of an acceleration,” Wilkins said. “Together, this suggests that companies are maintaining their current workforce rather than expanding the workforce, consistent with slower growth in construction activity.”
The March report is also the first since the start of the Iran war. Wilkins noted that the main impact of the conflict would be higher energy prices and increased uncertainty.
“This would increase project costs and could delay or reprioritize projects on the sidelines. In turn, this would reinforce the current pattern of cautious hiring rather than lead to an immediate increase in layoffs, unless these pressures are prolonged or more severe,” he said.
