Briefing Overview

  • According to data from the U.S. Bureau of Labor Statistics, construction job openings in Maysurged to 298,000, an increase of 32,000 month-over-month and 76,000 year-over-year, but hiring and layoff rates reflect mixed labor demand.
  • As of the last day of May, there were 298,000 job openings in construction, up 32,000 from April and 76,000 from the same period in 2025. Overall, 3.5% of construction positions remained unfilled last month.
  • Despite job openings rising to the highest level since 2026, economists say the pace of layoffs and hiring suggests fluctuating demand beyond the data center boom, while companies aim to retain existing staff.

Deep Insights

According to analysis by Anirban Basu, chief economist at the Associated Builders and Contractors, May's job openings hit a10-month high。

"Unfortunately, this increase may reflect exceptional demand for certain occupations critical to data center construction, such as electricians, rather than an overall rise in labor demand across the industry," Basu said in a press release. "Increased layoff activity and a decline in quits also indicate that construction labor demand weakened in May."

In fact, contractors laid off 174,000 workers in May, 47,000 more than in April. Meanwhile, monthly construction hiring decreased by 24,000.

Overall, the construction layoff rate in May was 2.1%, slightly lower than the 2.2% in the same period last year, said Marcina Wilkins, director of market insights at the Associated General Contractors of America.

May also signals the start of the construction season, providing context for interpreting the data.

"While warm weather typically favors construction activity, these data are seasonally adjusted, meaning they account for normal seasonal patterns such as weather and cyclical hiring cycles," Wilkins said. "Therefore, the increase in job openings indicates a modest strengthening in demand for workers, not merely reflecting the usual spring hiring surge."

But she also emphasized that the slight decline in the layoff rate suggests employers want to retain existing staff.

"The latest Job Openings and Labor Turnover Survey data for May show that contractors continue to take a cautious approach to hiring while striving to retain their current workforce," Wilkins said.