By Associated Builders and Contractors
The construction industry had 338,000 job openings on the last day of April, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 8,000 last month and are down by 25,000 from the same time last year.
“Construction job openings fell to the lowest level since March 2023,” said ABC Chief Economist Anirban Basu. “This recent decline in job openings does not necessarily signal a decline in the demand for labor. First, JOLTS data can be volatile, especially at the industry level. Second, payroll employment data show ongoing hiring, while ABC’s Construction Confidence Index shows that a majority of ABC contractors intend to increase their staffing levels over the next two quarters. And third, contractors continue to lay off workers at a low rate while workers are quitting at an elevated rate, both signs of a tight labor market.
“To the extent the demand for construction workers is weakening, it’s likely occurring in the residential segment,” said Basu. “More new homes were completed in the first four months of 2024 than during any four-month period dating back to 2007, and the combination of ample new-home inventory, a slumping multifamily segment and high interest rates has cut the demand for new residential construction.” (Source)