The number of open positions in the construction sector increased in May, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. Recent gains for nonresidential construction have increased demand for construction labor, although they have not fully offset the weakness present in the residential construction sector.
The number of open jobs for the overall economy was flat in May, remaining near 7.59 million. The May reading was also measurably higher compared to a year ago (7.31 million). The recent increase in job openings for the overall economy indicates that the labor market remains on solid footing, despite concerns over headline risk and AI.
The number of open construction sector jobs increased for the month, rising slightly from 266,000 in April to 298,000 in May. This total was higher than the total from a year ago (222,000). The chart below notes a declining trend followed by a new range for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a lower range in the job openings series since 2024.
The construction job openings rate increased to 3.5% in May, up from the 2.6% rate estimated a year ago.
The layoff rate in construction increased to 2.1% in May. The quits rate fell back 1.3% for the month.