Housing Construction Jobs Open Up

In May, the amount of open, unfilled construction sector positions increased over a slightly downwardly revised April estimate, according to the Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) and National Association of Home Builders (NAHB) analysis presented by Robert Dietz on their Eye on Housing blog. The number of construction jobs increased from 137,000 in April to 149,000 in May on a seasonally adjusted basis. The estimate for May is the fourth highest number since the recession.

The open position rate for the construction sector declined slightly to 2.3 percent in May on a three-month moving average basis, the data says. The open rate has been trending upward since 2012, while the three-month moving average for May remains near the cycle high set in March and April at 2.4 percent.

According to the data, the May construction sector hiring rate held steady at 5 percent as measured on a three-month moving average basis, and the May number of sector job quits was also relatively unchanged at 117,000.

“Many builders continue to cite access to labor as a top business challenge as the market recovers,” said Robert Dietz, VP for tax and market analysis for NAHB. “For the economy as a whole, the May JOLTS data indicate that the hiring rate fell to 3.5 percent of total employment. The overall job openings rate held steady at an elevated 3.6 percent rate. Rising job openings for the overall economy are affecting many business sectors as the unemployment rate falls.”

Employment in home building and remodeling stands at 2.442 million, according to monthly employment data for June 2015. This total included 686,000 builders and 1.755 million residential specialty trade contractors. In June, the number of jobs in home building and remodeling dropped for the second time in the last two years, falling 2,400 for the month. The industry pace of hiring has also dropped in 2015, with the average monthly employing gain standing at about 7,500 over the last six months.

“Nonetheless, over the last 12 months the industry has added 127,000 jobs on a net basis,” Dietz said. “Since the low point of industry employment following the Great Recession, the residential construction industry has gained 455,600 positions. “In June, the unemployment rate for construction workers stood at 7 percent on a seasonally adjusted basis. The unemployment rate for the construction occupation has been on a general decline since reaching a peak rate of 22 percent in February 2010.”