US Open Construction Sector Jobs Drop in July

A closer look at the Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) for July, with a focus on construction and additional analysis provided by the National Association of Home Builders (NAHB), reveals that the number of open construction sector jobs shifted notably lower from 299,000 in June to 248,000 in July.

Elements of the construction sector have slowed as elevated interest rates held, most notably multifamily development, NAHB said. This slowing has somewhat reduced demand for construction workers, lowering the job opening count for the construction industry. The open job count was 351,000 a year ago.

The construction job openings rate fell to 2.9% in July, the lowest rate since March 2020. The job openings rate has trended lower as the number of single-family and multifamily residences under construction has declined. This is a cyclical effect that will likely reverse later in 2025.

The layoff rate in construction increased from 1.3% in June to 2.1% in July. The quits rate in construction increased from 1.6% in June to 2.1% in July. The rise in the layoff rate is consistent with a slowing construction labor market.

NAHB expects that as the Fed eases monetary policy, the demand for new construction will expand. Thus, a reversal for the current soft readings for construction labor will occur in the quarters ahead. This means the underlying skilled labor shortage is likely to persist during the coming years.