According to the Bureau of Labor Statistics, the number of open positions in the construction sector rose in May.
That’s according to the bureau’s Job Openings and Labor Turnover Survey (JOLTS).
May’s job openings hit a 10-month high, said Anirban Basu, Chief Economist at Associated Builders and Contractors.
“Unfortunately, that increase likely reflects exceptional demand for certain occupations critical to data center buildouts, like electricians, rather than increased industrywide demand for labor,” Basu said in a news release. “Rising layoff activity and a falling quit rate also suggest that demand for construction labor weakened in May.”
The survey noted that the current level of open jobs is down measurably from three years ago because of declines in construction activity, particularly in housing, according to analysis from the National Association of Home Builders.
Overall Open Jobs Flat in May
It said that recent gains for nonresidential construction have increased demand for construction labor, although the gains haven’t fully offset the weakness present in the residential construction sector.
The number of open jobs for the overall economy was flat in May, remaining near 7.59 million, the bureau said. The May reading also was measurably higher compared to a year ago (7.31 million), it said.
According to the bureau, the recent rise in job openings for the overall economy indicates that the labor market remains on solid footing, despite concerns over headline risk and AI.
The number of open construction sector jobs increased for the month, going up slightly from 266,000 in April to 298,000 in May. That total was higher than the total from a year ago (222,000), the bureau said.
While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a lower range in the job openings series since 2024, the bureau said.
The construction job openings rate increased to 3.5% in May, up from the 2.6% rate that was estimated a year ago.
The layoff rate in construction increased to 2.1% in May, while the quits rate fell 1.3% for the month.
