After a period of slowing associated with declines for some elements of residential construction, the count of open construction sector jobs trended lower in the September data, per the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). The data indicates the demand for construction labor market remains weaker than a year ago.
In September, after revisions, the number of open jobs for the overall economy declined from 7.86 million to 7.44 million. This is notably smaller than the 9.31 million estimate reported a year ago and a clear sign of a softening aggregate 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 should continue lowering rates.
The number of open construction sector jobs fell from a revised 328,000 in August to a softer 288,000 in September. Elements of the construction sector slowed in prior months as tight Fed policy persisted. The September reading of opening, unfilled construction jobs is lower than that registered a year ago: 422,000.
The construction job openings rate fell back to 3.4% in September and continues to trend lower.
The layoff rate in construction edged higher to 2.1% in September after a 2% rate in August. The quits rate in construction decreased to just 1.4% in September as job churn slowed.
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