The construction industry had 459,000 job openings at the end of November, the highest level since the end of 2022, according to an analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. Industry openings increased by 43,000 from the previous month.
“The number of open, unfilled construction positions increased to the highest level since the end of 2022,” said Anirban Basu, chief economist of the Associated Builders and Contractors (ABC). “November’s 5.4% job opening rate is higher than at any point from the start of the data series in 2000 to the end of 2021. Contractors continue to grapple with skilled labor shortages even as demand for and supply for labor in the broader economy rebalances.”
In the overall economy, the number of open jobs for the economy declined to 8.8 million, a reflection of tightened monetary policy, according to the NAHB. In November 2022, the count of open jobs was 10.8 million. The NAHB estimates that the number of open jobs must fall below 8 million “for the Federal Reserve to feel more comfortable about labor market conditions and their potential impacts of inflation.”
“While the Fed intends for higher interest rates to have an impact on the demand-side of the economy, the ultimate solution for the labor shortage will not be found by slowing worker demand, but by recruiting, training, and retaining skilled workers,” NAHB chief economist Robert Dietz wrote in a post for the organization.
Hiring in the construction sector decreased to a 4.5% rate in November after running at a rate of 4.7% in October. Sector layoffs were steady at a rate of 2.1% in November after 2% in October.
“Looking forward, attracting skilled labor will remain a key objective for construction firms in the coming years,” Dietz wrote. “While a slowing housing market will take some pressure off tight labor markets, the long-term labor challenge will persist beyond the ongoing macro slowdown.”
