Construction Layoffs Hit Record Low as Skilled Trades Stay Scarce
Contractors laid off 99,000 workers in August, down nearly 46% from a year earlier and the lowest figure since the Bureau of Labor Statistics began tracking job openings in December 2000, Construction Dive reports, citing Associated Builders and Contractors (ABC) chief economist Anirban Basu.
Construction still had 251,000 open jobs on Aug. 31, and 2.9% of all construction positions were unfilled. Openings where contractors were actively hiring fell 48,000 from July but rose 38,000 from a year earlier. Construction unemployment hit a record-low 3.1% in August, according to Macrina Wilkins of the Associated General Contractors of America (AGC).
Basu tied the split to weak residential work alongside booming data center activity, which is straining supply of certain skilled trades. Nonresidential builders told ABC’s Contractor Confidence Index they will likely add staff over the next six months. Basu predicted labor costs will keep surging, especially for electricians and HVAC workers. Wilkins said heightened immigration enforcement may also be making it harder to find qualified hires.
What It Means for Subcontractors
- Electrical and HVAC firms: Basu singles out these trades for continued labor cost surges. Build labor cost escalation into bids now. Our read is that contractors are holding crews rather than cutting, which keeps skilled labor tight. That is our inference, not a figure from the source.
- Data center and nonresidential bidders: ABC’s index shows nonresidential builders planning to add staff within six months. Expect competition for the same scarce skilled workers, and build that into crew availability and escalation language.
- Residential subs: Basu cites ongoing residential weakness, so these firms may see nonresidential competitors try to recruit their crews. That is our inference, not a finding from the source.
