The construction labor market saw little change for job openings in June as open, unfilled jobs for the overall economy continued to move lower to 9.6 million.
The count of open jobs was 10 million in June 2022.
The count of open construction jobs decreased to 374,000 in August 2023 after a data series high of 488,000 in December 2022, according to the National Association of Home Builders (NAHB).
The overall trend is one of cooling for open construction sector jobs as the housing market slows and backlog reduces, with a notable uptick in month-to-month volatility since late last year.
The construction job openings rate ticked down to 4.5% in June. The recent trend of these estimates points to the construction labor market having peaked in 2022 and is now entering a stop-start cooling stage as the housing market adjusts to higher interest rates.
Total job openings are predicted to fall in the remainder of 2023 as the labor market softens and unemployment rises. Ideally, the count of open, unfilled positions slows to the 8 million range in the coming quarters as the Federal Reserve’s actions cool inflation.
Construction jobs moving forward
While higher interest rates are impacting the demand-side of the economy, the ultimate solution for the labor shortage will not be found by slowing worker demand, but by recruiting, training and retaining skilled workers, according to the NAHB.Â
For the future, attracting skilled labor will remain a key objective for construction firms in the coming years. While a slowing housing market will take some pressure off tight labor markets, the long-term labor challenge will persist beyond the ongoing macro slowdown.
