Construction Worker Quit Rate Hits Nine-Year Low

The construction industry had 306,000 job openings at the end of July, an increase of 64,000 from the previous month and 77,000 year over year, according to an analysis of federal data by Associated Builders and Contractors (ABC). The job opening rate also rose to its highest level in over a year.

However, ABC Chief Economist Anirban Basu noted that other labor data points to a potential deterioration in labor demand. The number of construction workers who quit their jobs in July was the lowest in nine years, while layoffs increased to their highest level since the first quarter of 2023.

“Fewer construction workers quit their jobs in July than in any month over the past nine years, suggesting widespread concern about job security,” Basu said.

Basu suggested the increase in job openings is likely tied to immigration policy affecting the labor force rather than a surge in demand for workers, especially given the ongoing decline in nonresidential construction spending.

Despite these mixed signals, ABC’s Construction Confidence Index indicated that more than 55% of its members expect to increase staffing levels over the next six months. Basu noted that the monthly JOLTS data can be volatile and that the confidence index will be a critical measure to monitor in the coming months.