The construction labor market remains tight, with the count for open construction jobs increasing to 380,000 unfilled positions in January, according to the NAHB. The count is slightly below the highest measure in the history of the data series (416,000) from April 2019.
Hiring in the construction sector remained solid in January, albeit easing to a 4% rate. The post-virus peak rate of hiring occurred in May 2020 (10.4%) as a rebound took hold in home building and remodeling. Construction sector layoffs remained low at a 2% rate in January. In April 2020, the layoff rate was 10.8%. Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects. The rate trended lower in 2021 due to the skilled labor shortage.
The number of job quits for the overall economy continues to be elevated as the Great Resignation continues. More than 4.2 million workers quit their jobs in January. This marked eight consecutive months of a quits count of more then 4 million for the month. The number of quits in construction in January (146,000) declined somewhat, although this is off a data series high in November (215,000).
Looking forward, the construction job openings rate is likely to see increased upward pressure as both the residential and nonresidential construction sectors expand. Attracting skilled labor will remain a key objective for construction firms in the coming quarters and will become more challenging as the labor market strengthens and the unemployment rate declines.