Who got Hired? Who got Fired?

Lack of lots and labor have been a concern in the single-family construction market and the results from the Bureau of Labor Statistics Job Openings and Labor Turnover Survey and National Association of Home Builders (NAHB) analysis say that concern continues. The count of unfilled jobs has now fallen below levels recorded a year ago.

There were 254,000 open construction sector jobs in May, with the cycle high being set last July at 238,000. Additionally, overall job openings decreased in May to 5.7 million, which is 301,000 less than the month prior. The largest decrease in job openings occurred in construction, but transportation, warehousing, and utilities were also in the list.

Job openings as a percent of total employment, otherwise known as the open position rate, came in at 2.2 percent. This is still an elevated 2.6 percent on a smoothed twelve-month moving average basis. According to NAHB, this overall trend for construction has been increasing since the end of the Great Recession and consistent with survey data that indicates access to labor remains a top business challenge for builders.

In regards to hiring in May, measured on a 12-month moving average basis, the construction sector hiring rate increased to 5.2 percent. Remaining in a range set in 2014, layoffs were steady at 2.7 percent on a twelve-month moving average. Thankfully, quit rates, which indicate labor market churn, declined form there recent increases to a 2 percent rate.

The labor market continues to expand as the labor market for construction workers remains tight, according to NAHB. Over the last 12 months, homebuilders and remodelers added 115,600 jobs and industry employment increased by almost 713,000 since the lowest point in the Great Recession. More workers will be needed in the residential construction sector in order to keep up with housing starts that are increasing every day.