NAHB: Unfilled construction jobs fall in September

11/9/2018
The number of unfilled jobs in the construction sector fell in September, off an upwardly revised August estimate that marked a post-recession high, according to the National Association of Home Builders (NAHB).

Based on the Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) and analysis from the NAHB analysis, the total number of open construction sector jobs decreased to 278,000 in September. The August estimate of open construction jobs was revised up to 317,000, the largest count since the Great Recession, the NAHB said.

The open position rate, which is job openings as a percentage of total employment plus current job openings, fell back to 3.7% in September. The rate was 2.5% in September 2017.

On a 12-month moving average basis, the open position rate for the construction sector increased slightly to 3.3%, a post-recession high. The peak rate during the building boom prior to the recession was just below 2.7%. For the current cycle, the sector has been above that rate since November 2016.

“The overall trend for open construction jobs has been increasing since the end of the Great Recession. This is consistent with survey data indicating that access to labor remains a top business challenge for builders,” the NAHB said in a prepared statement.

The construction sector hiring rate, as measured on a 12-month moving average basis, held steady at 5% in September. The 12-month moving average for layoffs was also stable at 2.3%. The trend for layoffs has been decreasing as the labor market tightens.

The NAHB also said it expects construction sector net hiring to continue in 2018 as the single-family construction market modestly expands, although recent slowing of the housing market will reduce those impacts. As labor remains a top cited challenge to expansion, builders will increasingly explore options to find ways to build more with less.
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