The Labor Market Slowed in October, but Construction Employment Remains Strong
Job growth slowed in October as the Fed continued to tighten its monetary policy in an ongoing effort to fight runaway inflation, but according to NAHB Eye on Housing, the labor market remains tight. The unemployment rate rose by 0.2 percentage points to 3.7% in October, and total nonfarm payroll employment increased by 261,000, its smallest monthly gain in nearly two years.
While the number of unemployed Americans increased by 306,000 to 6.1 million, employment in the overall construction sector was largely unchanged in October. Residential construction gained 900 jobs, exceeding its level in February 2020, while non-residential construction employment gained 300 jobs in October.
Residential construction employment now stands at 3.2 million in October, broken down as 904,000 builders and 2.3 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 6,217 a month. Over the last 12 months, home builders and remodelers added 105,300 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,195,000 positions.