Hiring Slows, Layoffs Up 15% for Construction Sector Compared to Last June
Job openings tick up from May but remain well below last year; nonresidential work offers rare bright spot amid subdued demand
NON-RESIDENTIAL: The nonresidential construction market continues to show more resilience than the residential market, offering hope for skilled tradespeople. (Courtesy of ABC)
Job prospects for HVAC and sheet metal contractors in June showed a mixed bag, with some signs of stabilization but little cause for celebration. According to recent data from the U.S. Bureau of Labor Statistics, analyzed by Associated Builders and Contractors (ABC), there were 246,000 job openings in construction at the end of June. That’s a modest uptick from May, but openings are still down nearly 14% from June 2024.
Layoffs across the trades – including HVAC and sheet metal – are happening at a much slower pace, giving some breathing room for those already on the job. Layoffs are down in June compared to May, but compared to last June, they're still up 15.6%.
Hiring is nowhere near the levels seen in recent years. In fact, the first half of 2025 marked the slowest hiring stretch for construction since the government started tracking this data in 2000.
“Contractors aren’t letting people go, but they’re not bringing in new hands at the usual clip either,” said Anirban Basu, chief economist for ABC. “That sluggish pace points to softer demand, especially in the residential sector, where many HVAC and sheet metal pros find work.”
Not all the news is gloomy. According to ABC’s Construction Confidence Index, less than 14% of contractors expect to cut staff in the second half of the year. The nonresidential construction market – think schools, hospitals, and commercial buildings – continues to show more resilience, offering hope for skilled tradespeople ready to pivot to those projects.
For HVAC and sheet metal contractors keeping an eye on the job market, the message is clear: jobs are out there, but competition is stiffer, and growth is likely to come from the nonresidential side, where technical skills and experience are in highest demand.
Key Factors Impacting Construction Hiring and Openings:
- Federal Reserve Interest Rates: Higher rates have slowed new construction starts, especially in the residential sector, making contractors more cautious about expanding their teams.
- Soft Residential Market: Ongoing struggles in the housing market have meant fewer new homes and apartments – traditionally big sources of work for HVAC and sheet metal crews.
- Stronger Nonresidential Demand: Schools, hospitals, and commercial buildings are still seeing investment, providing some stability and job opportunities in those sectors.
- Cautious Contractor Sentiment: Many contractors are holding steady on staffing, waiting for clearer economic signals before ramping up hiring.
- Material and Supply Chain Costs: Elevated costs for key materials and ongoing supply chain hiccups continue to impact project timelines and hiring plans.
- Modest Layoff Rates: Companies are retaining existing staff, reducing job churn but also limiting new openings.
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