The U.S. Department of Labor is reporting that an additional 207,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, January 1, 2022. This is an increase of 7,000 from the previous week’s revised level. The 4-week moving average was 204,50 — an increase of 4,750 from the previous week’s revised average.
Wood Markets News
Canadian Residential Building Permits Increase in 7 Out of 10 Provinces in November
Statistics Canada (StatsCan) reported today (1-5-22) that the total value of building permits in November increased 6.8% to $11.2 billion (CAD). According to StatsCan, 7 out of 10 Canadian provinces reported increases, with Alberta leading the way with a 20.6% jump. Overall construction intentions in the residential sector increased by 12.0%, while the non-residential sector experienced a -3.4% decline.
Construction Employment Increases Year-Over-Year in November but Still Lags Behind Pre-Pandemic Levels
According to analysis provided by the Associated General Contractors of America (AGC), construction employment increased in nearly two out of three U.S. metro areas year-over-year, between November 2020 and November 2021. AGC officials welcomed the news for the overall construction industry but noted that it will be challenging for construction levels to return to pre-pandemic levels amid the current tight labor market conditions.
ADP Reports Private Sector Employment Increased by 807,000 Jobs in December but Still Trails Pre-Covid-19 Levels
According to the December ADP® National Employment Report™, nonfarm private sector employment increased by 807, 000 jobs from November to December. The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis.
CoreLogic Home Price Index Reports Highest 12-Month Growth in 45-Years in November
According to the latest CoreLogic Home Price Index (HPI®) Report, released on Tuesday (1-4-22), U.S. national home prices increased 18.1% year-over-year in November 2021. The November 2021 HPI gain was up from the November 2020 gain of 8.1% and was the highest 12-month growth in the U.S. index since the series began in 1976.
Mortgage Applications Decline Over 2-Week Holiday Period
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 31, 2021, the Market Composite Index (a measure of mortgage loan application volume) decreased -2.7% percent on a seasonally adjusted basis from two week earlier. On an unadjusted basis, the Index decreased -32% compared to two weeks ago.
Canfor’s Houston, B.C. Sawmill to Resume Full Production Operations
Canfor Corporation announced on Wednesday (12-29-21) that their Houston, B.C. mill, which has been dealing with cutbacks as a result of challenging market conditions since late summer, will resume full operations effective Monday, January 23, 2022. According to Rosemary Silva, Canfor’s External Relations Senior Advisor, “Currently, we have limited staff performing special projects and preparatory maintenance work…”
GO Lab Inc. to Build First North American Wood-Fiber Insulation Factory in Madison, Maine
GO Lab Inc., a Belfast, Maine startup, has closed on the sale of $85 million in bond funding and completed a New Markets Tax Credit transaction that will fund the construction of a wood-fiber insulation factory at the former UPM paper in Madison. If construction work goes as planned, GO Lab expects to be producing its TimberHP loose-fill insulation in Q1 of 2023, followed by wood fiber batt and board products in Q2 and Q3.
Strike at UPM Finland Facilities Will Not Impact UPM Plywood or Timber Mills
UPM, a Finish forest industry company, has a labor-based strike ongoing at several of their pulp, biofuels, communications, and specialty paper plants located in Finland. The strike, however, does not impact nor concern UPM Plywood and UPM Timber mills, both of which signed business specific collective bargaining agreement with the Industrial Union in December.
Construction Job Openings Gain Year-Over-Year in November
A closer look at the Bureau of Labor Statistics (BLS) Job Openings and Labor Turn Over Survey (JOLTS) for November — with an emphasis on the construction labor market and additional analysis provided by the National Association of Home Builders (NAHB) — reveals that the construction labor market remains tight as the number of quits accelerated. According to the report, the number of open/unfilled construction positions in November dropped to 345,000, or -4.4%.