New construction jobs fall in sign of waning demand for labor

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By Ethan Duran, BridgeTower Media Newswires | Originally posted on finance-commerce.com

Construction job openings in early spring fell by 38,000, which experts called a sign of slowing demand for labor.

There were 248,000 job openings in construction on the last day of March, an Associated Builders and Contractors analysis of data from a U.S. Bureau of Labor Statistics survey showed. Job openings were down 90,000 from the same period last year, officials added.

“Construction job openings continued to trend lower in March, a clear sign of slowing industrywide demand for labor,” said Anirban Basu, chief economist for ABC. “Hiring activity was particularly weak for the month, with the 302,000 hires equivalent to just 3.6% of industrywide jobs — the lowest rate every recorded,” he added.

Labor force churn was “virtually nonexistent” as quitting and layoff activity subdued for the month, Basu noted.

“While a majority of contractors surveyed in March expect to increase their staffing levels over the next six months, according to ABC’s Construction Confidence index, tariffs and other economic headwinds may blunt hiring expectations in the months to come,” Basu said.

Tariffs enacted by President Donald Trump on trading partners such as Mexico, Canada and China have driven some developers and companies to cancel or scale back projects, different outlets have reported. In Wisconsin, some contractors with more than 30 years of industry experience said they have seen unprecedented uncertainty, which affects both construction companies and real estate developers.

Microsoft’s $3.3 billion data center in Mount Pleasant acts as a major labor driver, drawing more than 2,000 trades workers each day. However, the tech giant paused extended sites from its facility underway in Mount Pleasant. Mount Pleasant and Microsoft officials said they will still commit to their project.