Construction job openings fell in April

The U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey shows the construction industry registered 338,000 job openings in April, which is down by 8,000 from March and by 25,000 from April 2023, according to Associated Builders and Contractors. The survey defines a job opening as any unfilled position for which an employer is actively recruiting.

Construction workers quit at a faster rate than they were laid off; the quit rate in April was 2.4%, and the layoff/discharge rate was 1.9%.

“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,” Basu continued. “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.”

Date : Jan. 01, 0001