The U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey shows the construction industry registered 383,000 job openings in April, which is up by 68,000 from March but down by 35,000 from April 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 were laid off or discharged at a faster rate than they quit; the layoff/discharge rate in April was 2.4%, and the quit rate was 2.1%.
“Demand for construction workers remained elevated in April despite an array of economic headwinds,” said ABC Chief Economist Anirban Basu. “There are signs that higher interest rates have dampened demand for construction services, especially in the residential segment, yet contractors continue to struggle to fill open positions. Overall, 4.6% of construction positions were unfilled in April, a significantly higher rate than the pre-pandemic average of 2.2%.
“Further, contractors expect their demand for labor to remain elevated over the next two quarters,” Basu continued. “Approximately 58% of ABC members intend to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index. At some point, the combination of a year-plus of rising interest rates and tighter credit conditions will reduce demand for construction services. For now, contractors remain busy and will continue to grapple with ongoing worker shortages.”
