The U.S. construction industry increased employment by a modest 4,000 jobs in January, continuing a recent trend of slowed hiring by contractors, according to the Bureau of Labor Statistics' most recent employment report, released Feb. 7.

“Construction hiring has slowed to a crawl since October,” noted Associated Builders and Contractors Chief Economist Anirban Basu in a press release.

For instance, by comparison, BLS previously reported construction jobs increasing by 25,000 last September. Then, over the next three months combined, the industry added just 26,000 positions.

According to the BLS report for January, the broad category of specialty trade contractors added a total of 3,500 jobs. That figure was the result of nonresidential specialty trade contractors adding 5,600 positions in January, combined with a decline of 2,100 jobs among residential specialty trade contractors.

Building contractors added just 3,000 jobs overall. Within this category, residential builders added 1,900 positions, while nonresidential construction firms increased jobs by 1,100. Meanwhile, the heavy and civil engineering category posted a decline of 2,300 positions, according to BLS.

Construction's hiring slowdown “is largely a reflection of weakness in the residential sector," commented ABC's Basu. He added that due to "the ongoing effects of high interest rates and the sharp decline in the number of housing units under construction, residential employment should continue to pull back over the next few quarters."

“The already tight labor market is getting tighter in the construction sector,” commented Jeffrey Shoaf, chief executive officer for the Associated General Contractors of America, in a Feb. 7 press release. “Absent new investments in construction training and work authorization programs, it will be hard for firms to keep pace with demand.”

The association noted that a survey of member firms published in the AGC of America/Sage 2025 Construction Hiring and Business Outlook found that nearly 80% of respondents are "having a hard time finding enough workers to hire." 

The association added that "a growing number of firms are reporting workers are not showing up to job sites amid fears of increased immigration enforcement activities."

“The only way firms will be able to keep pace with strong demand for construction is if there are enough people available to build,” AGC's Shoaf added. “That is why federal officials need to boost funding for construction education programs and expand lawful work authorization programs for people with construction skills.”