The count of open, unfilled positions in the construction industry was relatively unchanged in October, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from two years ago due to declines in construction activity, particularly in housing.
The number of open jobs for the overall economy was effectively unchanged, increasing from 7.66 million in September to 7.67 million in October. The October reading was was relatively unchanged from the 7.62 million estimate from a year ago.
Previous NAHB analysis indicated that this number had to fall below 8 million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below 8 million for national job openings, the Fed, in theory, should be able to cut further.
The number of open construction sector jobs decreased from 231,000 in September to 213,000 in October. This total is relatively stable compared to a year ago (249,000), although the reading is notably lower than two years ago. The chart below notes the declining trend that has been in place for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened.
The construction job openings rate declined to 2.5% in October, lower than the 2.9% rate estimated a year ago.
The layoff rate in construction declined to 1.8% in October. The quits rate edged lower to 1.4% in October.