The U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey shows the construction industry registered 388,000 job openings in November 2022, which is down 2,000 from October 2022 and up 22,000 from November 2021, according to www.abc.org. The survey defines a job opening as any unfilled position for which an employer is actively recruiting.
Construction workers quit their jobs at a slightly faster rate than they were laid off or discharged; the quit rate in November 2022 was 1.8%, and the layoff/discharge rate was 1.7%.
“Once again, good news is bad news,” said Associated Builders and Contractors Chief Economist Anirban Basu. “The economywide number of job openings remained elevated at approximately 10.5 million in November, virtually unchanged from October’s revised estimate. That’s the key takeaway in a still-red-hot labor market, as many employers continue to aim for expanded capacity to satisfy unmet demand. That is the good news.
“The bad news is obvious,” Basu continued. “Despite raising interest rates during the last 10 months, the Federal Reserve is still grappling with an excessively tight labor market associated with rapid compensation cost increases. To return inflation to its 2% target, the Federal Reserve needs a looser labor market with fewer job openings, higher unemployment and slower compensation growth. The implication is that interest rates will continue to rise, adding to construction project financing costs and potentially setting the stage for sharp declines in activity in many privately financed construction segments.”
