Construction Sector Employment Slips in January’s Job Openings and Labor Turnover Survey

A closer look at Wednesday’s Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) for January, with a focus on the construction industry and additional analysis provided by the National Association of Home Builders (NAHB), reveals that the construction labor market experienced a decline in construction job openings in January.

The number of open jobs for the economy fell back to 8.86 million in January. This is notably lower than the 10.4 million reported a year ago. NAHB estimates indicate that openings must fall back below 8 million for the Federal Reserve to feel more comfortable about labor market conditions and their potential impacts on inflation.

The count of open construction jobs edged lower according to the most recent BLS data, declining from 434,000 in December 2023 to 413,000 in January. The count in January 2023 was just 293,000, during a period of weaker home construction. The construction job openings rate modestly declined in January to 4.8%. Nonetheless, a recent, increasing trend indicates an ongoing skilled labor shortage in the construction sector, the NAHB says.