The construction industry has witnessed a period of slowdown, with some elements of the residential construction sector facing declines. According to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS), the count of open construction sector jobs trended lower in the October data. This indicates that the demand for construction labor market remains weaker than a year ago.

Overall Economy vs. Construction Sector

After revisions, the number of open jobs for the overall economy increased from 7.37 million to 7.74 million in October. However, this is notably smaller than the 8.69 million estimate reported a year ago, signifying a softening aggregate labor market. Previous NAHB analysis suggested that this number needed to fall below 8 million on a sustained basis for the Federal Reserve to be more comfortable about labor market conditions and their potential impacts on inflation. With estimates remaining below 8 million for national job openings, the Fed is easing credit conditions.

Construction Sector Job Openings in October

The number of open construction sector jobs fell from a revised 258,000 in September to 249,000 in October. Elements of the construction sector slowed in prior months due to the persistent tight Fed policy. The October reading of opening, unfilled construction jobs is lower than that registered a year ago, which was 413,000.

Construction Job Openings Rate and Layoff Rate

The construction job openings rate fell back to 2.9% in October and continues to trend lower. There is a fair amount of statistical month-to-month noise in the recent data. The layoff rate in construction moved lower to 1.2% in October after a 2% rate in September, marking the lowest layoff rate for construction in the data series (dating back to late 2000). The quits rate in construction increased to 1.9% in October.Discover more from Eye On HousingSubscribe to get the latest posts sent to your email.