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A new commander in chief brings new policies, and thus far, President Donald Trump’s tariff policy has muddied the economic outlook for contractors.

Layoffs and discharges in construction declined by 27% year over year, as the rate of layoffs fell to 1.7%, the lowest ever recorded for February, according to Macrina Wilkins, senior research analyst for the Associated General Contractors of America.

Wilkins said the report indicates not just a simple slowdown, but a shift in labor dynamics.

“Contractors are clearly scaling back on hiring and new job postings — likely reflecting fewer upcoming projects or increased caution about the economic outlook,” she said. “Yet the record-low layoff rate suggests that firms are holding onto their current workforce, signaling they expect business to rebound or pick up later in the year.”

Anirban Basu, chief economist for Associated Builders and Contractors , shared the same sentiment, noting the large gap between layoffs and quits.

“Still, there are signs that construction workers retain outsized leverage compared to their employers,” Basu said in a release. “Contractors remain reluctant to lay off workers, while construction workers quit their jobs at the fastest pace since last May.”

Nonetheless, data from ABC members indicated for Basu that staffing levels will continue to increase — meaning the pace of hiring will likely accelerate in the second half of 2025.