Government Shutdown Leaves Contractors in the Dark on Labor Data

Extended Federal Shutdown Halts Critical Labor Market Reporting

The 2025 U.S. government shutdown, which reached 37 days as of November 6, 2025, is the longest in the nation's history and is preventing the release of critical labor market data that contractors rely on to make business decisions. The Bureau of Labor Statistics missed its regular monthly release of the Job Openings and Labor Turnover Survey (JOLTS), which would have included data from September 2025, according to reporting from Construction Dive and the Associated Builders and Contractors.

The lack of economic data during an extended shutdown creates significant challenges for construction industry decision-makers. Weekly unemployment insurance data and the BLS jobs report remain unavailable, leaving contractors and industry analysts, in the words of Zack Fritz, economist for Associated Builders and Contractors, "in the dark on the health of the labor market."

Missed Data Has Real Consequences

The JOLTS survey provides critical information that contractors use to understand labor market dynamics, including recent job openings, hiring rates, layoff trends, and voluntary quit rates. This data is essential for workforce planning and business strategy development.

Ken Simonson, chief economist for the Associated General Contractors of America, notes that there is no exact substitute for JOLTS data. While private employment metrics from companies like ADP and Challenger, Gray & Christmas can help paint a picture of the labor market, these alternative sources don't capture the complete picture that government data provides.

"There's no exact substitute data for JOLTS estimates of recent openings, hires, layoffs or quits," Simonson explained, emphasizing the importance of official government statistics for industry analysis.

October Job Cut Data Shows Construction Resilience

While some economic data remains unavailable, private employment tracking does provide some insights. In October 2025, U.S.-based employers announced 153,074 job cuts, up 175% from October 2024—setting the highest benchmark for the month in 22 years, according to the Challenger, Gray & Christmas employment report released November 6, 2025.

However, the construction industry showed relative resilience. Construction firms cut 1,634 jobs in October 2025, which did not place the sector among the top industries for layoffs. This suggests construction employment remains more stable than some other economic sectors experiencing significant workforce reductions.

Data Center and Power Projects Remain Bright Spots

Despite broader economic uncertainty, specific construction sectors are thriving. According to Simonson's conversations with contractors and broader media coverage, the only areas of construction showing strong momentum are data center and power projects.

This concentration of growth in specialized sectors suggests that while overall construction demand may be cooling in traditional segments, strategic growth areas continue to attract significant investment and employment.

Weak Demand in Traditional Construction

Market conditions paint a more sobering picture for traditional construction sectors. Reports from commercial real estate data providers suggest demand remains weak for most income-producing construction, such as warehouses and logistics, retail, offices, lodging, and multifamily—with limited exceptions by location or niche, according to AGC analysis.

This weakness in traditional commercial real estate development stands in sharp contrast to the robust growth in specialized sectors like data centers and power infrastructure.

Contractor Guidance During Data Blackout

With critical labor market statistics unavailable, construction industry leaders are providing pragmatic guidance for business decision-making in the short term.

Zack Fritz of ABC suggests: "I think you're pretty safe, at least in the short term, to operate based on what you're seeing with market conditions. But if you see a huge decrease in job openings and construction employment starts to fall rapidly, you might change your hiring strategy in the short term."

This means contractors should rely on direct market observation and their own business intelligence when government data is unavailable.

What to Expect When Government Reopens

When the federal government eventually resumes operations, construction industry stakeholders should be prepared for reporting delays and methodology updates.

Fritz warned: "I think there'll be a secondary delay. I also think that they're very transparent about these things, so if they do have to adjust their methodology as they reopen we'll see that and be able to consider those potential caveats."

Once data resumes, economists and contractors should expect some catching up on missed reports and potential revisions as the Bureau of Labor Statistics reestablishes normal operations.

ABC Takes Action

The Associated Builders and Contractors has paused publication of reports to members detailing data on construction staffing and spending due to the lack of government economic data. However, ABC will continue recording data from member surveys, such as its Contractor Confidence Index, which measures builders' sentiment around sales, profit margins, and staffing.

This contractor-based data provides an alternative source of industry sentiment during the data vacuum created by the government shutdown.

Implications for Construction Contractors

Contractors operating during this period of limited labor market data should:

• Monitor their local market conditions closely for hiring trends and labor availability
• Track job opening trends in their specific sectors
• Use alternative data sources like private employment reports and industry surveys
• Be prepared for volatility when government data eventually resumes
• Adjust hiring and workforce planning based on direct market observation
• Focus on sectors showing strength (data centers, power projects) for growth opportunities

Industry Adapts to Uncertainty

While the government shutdown creates challenges for construction industry planning, contractors are adapting by relying on direct market observation, alternative data sources, and industry peer networks. The extended data blackout underscores the importance of having diverse sources of market intelligence and the ability to make business decisions based on observable conditions rather than historical economic statistics.

Source: Construction Dive (November 6, 2025) | Associated Builders and Contractors | Challenger, Gray & Christmas (October 2025 report) | Associated General Contractors of America