The U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey shows the construction industry registered 366,000 job openings in May, which is up by 19,000 from April but down by 26,000 from May 2022, according to Associated Builders and Contractors. The survey defines a job opening as any unfilled position for which an employer is actively recruiting.
Construction workers quit at a faster rate than they were laid off or discharged; the quit rate in May was 2.9%, and the layoff/discharge rate was 1.5%.
“Today’s JOLTS data confirm that labor shortages remain firmly in place,” said ABC Chief Economist Anirban Basu. “This shortfall has shifted leverage to workers. Contractors laid off just 1.5% of their employees in May, the lowest rate in exactly a year and the fourth-lowest rate on record, while 2.9% of construction workers quit during the month, the highest share since last August.
“These dynamics will persist during the next few months,” Basu continued. “A majority of contractors expect to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, and today’s ADP employment report estimated that the construction industry added nearly 100,000 jobs in June. The combination of high interest rates and tight credit conditions will eventually drag down demand for construction services, but until that time the industry will continue to be defined by worker scarcity.”
