Construction Sector Job Openings and Labor Turnover Survey Results for October

A closer look at the Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) for October (12-5-23), with a focus on the construction sector and additional analysis provided by the National Association of Home Builders (NAHB), reveals that the construction labor market remained active and tight in October.

According to the BLS, the count of open construction jobs held steady at 423,000 in October, after a revised reading of 427,000 in September. A year ago, the count was 398,000—the result of a cooling trend in the housing market. The NAHB points out that these estimates come after a data series high of 488,000 set in December 2022. The NAHB also notes that despite the tightness, the overall trend is one of cooling for open construction sector jobs as the housing market remains off peak levels and the current backlog is reduced, with a notable uptick in month-to-month instability since late last year.

Construction sector hiring increased to a solid 4.7% rate in October, after posting a 3.9% rate in September. The post-pandemic peak in hiring occurred in May 2020, reaching 10.4%.

Construction sector layoffs held steady at a rate of 2% in October, the same rate as was reported in September. In April 2020, the layoff rate was 10.8%; and since that time, the sector layoff rate has been below 3.0% (with the exception of a weather-related issue in February 2021 and March 2023 due to some market churn).