The number of unfilled positions in the construction industry appears to be falling, according to new figures by the Associated Builders and Contractors (ABC). June 2022 saw 334,000 unfilled positions in the sector, down 17% on the previous month, but still 4% higher than June 2021.

ABC’s analysis, using survey data derived from the U.S. Bureau of Labor Statistics, suggests that the construction industry has experienced one of the sharpest reductions in job openings across the economy in the past month. ABC believes the decline to be fuelled by rising borrowing costs, and growing fears of a recession.

“While debate regarding whether or not the United States is in recession rages on, one thing appears clear: the U.S. economy is poised to slow,” said ABC Chief Economist Anirban Basu in a statement. “What had been an economy beset largely by issues of supply is now becoming one faced with both supply chain issues and weakening demand for goods and services.”

The analysis showed that, for the 16th month in a row, construction workers quit their jobs at a faster rate (2.3%) than they were laid off (1.7%). The rate at which new workers are taking up positions in the industry (4.5%) also continues to be higher than the rate at which they are leaving (4.1%).

While the number of unfilled positions has fallen sharply versus May 2022, a separate analysis by the Association of General Contractors of America (AGC) from June noted that May 2022 was a record month for unfilled positions in the construction industry in the 21st century.

To address the high levels of job openings, which have prevailed throughout 2022, the average earnings for construction employees has risen 6.3% in the last 12 months. “For contractors to get more workers on board, I think they’ll have to raise pay even more,” AGC chief economist Ken Simonson told Construction Dive at the time. “I expect workforce challenges to outlast materials cost or supply chain issues.”

Meanwhile, creeping pessimism about the future of the U.S. economy has not yet translated into declines in demand for architecture services according to the latest Architecture Billings Index, where a continued project backlog is sustaining positive growth in the profession.