Demand in the Construction Labor Market Continues to Weaken in October

A closer look at the Bureau of Labor Statistics’ latest Job Openings and Labor Turnover Survey (JOLTS) for October, with additional analysis provided by the National Association of Home Builders (NAHB), reveals that the count of open construction sector jobs trended lower. This follows a period of slowing associated with declines for some elements of the residential construction industry. The data indicates that demand within the construction labor market remains weaker than a year ago.

According to the NAHB, the number of open construction sector jobs fell from a revised 258,000 in September to a softer 249,000 in October. Elements of the construction sector slowed in prior months as tight Fed policy persisted. The October reading of opening, unfilled construction jobs is lower than that registered a year ago: 413,000.

The construction job openings rate fell back to 2.9% in October and continues to trend lower, albeit with a fair amount of statistical month-to-month noise in the recent data.

The layoff rate in construction moved lower to 1.2% in October after a 2% rate in September. This was the lowest layoff rate for construction in the data series, which goes back to the late 2000. The quits rate in construction increased to 1.9% in October.