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New construction could be on the rise as recent data shows construction employment is growing.
According to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey, the number of unfilled jobs in the construction sector has declined over the last three months. This spur of construction hiring could be good news for the single-family mortgage market, which has shown a concern for a lack of housing inventory. According to the National Association of Realtors, housing inventory dropped 6.3 percent year-over-year in December.
“The overall trend for open construction jobs has been increasing since the end of the Great Recession,” said Robert Dietz in an analysis on the National Association of Homebuilders website. “This is consistent with survey data indicating that access to labor remains a top business challenge for builders. However, a recent increase in hiring has reduced the current level of unfilled jobs in the sector.”
In July 2016, 225,000 construction jobs were open, according to the Job Openings survey. As of December 2016, only 148,000 of those jobs remained.
The hiring rate for construction jobs jumped to 5.8 percent in December—its best pace since Q1 2015. Additionally, the quitting rate fell for the month, dropping to just 1.8 percent.
Overall, construction unemployment rates have leveled off at 7.3 percent. It reached its peak in February 2010, when it hit 22 percent. It has hovered in the 6- to 7-percent range since mid-2016.
The remodeling and home building segments of the industry are seeing particular growth; in total, the two saw an increase of 20,300 jobs in January and, over the last year, nearly 130,000 jobs were added to these sectors alone.
In the residential construction arena, employment is currently at about 2.6 million—762,000 with builders and 1.921 in specialty trade contractors, according to the BLS survey. The industry has gained just over 700,000 jobs since the Great Recession.
To see the full results of the Job Openings and Labor Turnover Survey, visit BLS.gov.
