Construction Labor Market Remains Strong, Sees Reduced Turnover

Since March, the construction labor market has continued to see a strong recovery. The hiring rate for the construction sector saw its peak in May with an occupational gain of 9.7% and the rate remained strong and steady from August to July. In September, hiring rates dropped slightly to 5.3%, but the turnover rate in September also dropped, according to the National Association of Home Builders. The layoff rate has come down significantly from its peak in April at 10.8%. Now, the September layoff rate floats at 1.4%, the lowest rate in the entire data series, which began tracking numbers in 2001.

The job openings rate in construction declined in September to a 3.1% rate, with 229,000 open positions in construction. This is lower than the 333,000 count recorded a year ago, as the construction labor market adjusts to the new post-virus crisis period.

Looking forward, the job openings rate is likely to experience choppiness in the months ahead given divergent outlooks within the construction industry. Home building and remodeling are relative bright spots for the overall economy, while nonresidential construction will experience greater headwinds.

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