After a period of slowing associated with declines for some elements of residential construction, the count of open construction sector jobs bounced back in the August data, per the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). However, construction job openings remain slightly lower compared to a year ago.
In August, after revisions, the number of open jobs for the overall economy increased slightly from 7.71 million to 8.04 million. This is notably smaller than the 9.36 million estimate reported a year ago, but the monthly gain is a sign of a somewhat resilient labor market. Previous NAHB analysis indicated that this number had to fall below 8 million on a sustained basis for the Federal Reserve to feel more comfortable about labor market conditions and their potential impacts on inflation. With estimates now remaining near 8 million for national job openings, the Fed has begun a credit easing cycle.
The number of open construction sector jobs rebounded from a revised, soft reading of 232,000 in July to 370,000 in August. Elements of the construction sector slowed in prior months as tight Fed policy persisted. However, with the August rebound for open construction sector jobs, the number of job openings is roughly flat compared to the year-prior estimate of 386,000 in August 2023.
The construction job openings rate also increased, rising to 4.3% in August after several months of weaker readings.
The layoff rate in construction increased to 2.0% in August after a 1.9% rate in July. The quits rate in construction decreased slightly to 2.1% in August from 2.2% in July.
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