Dive Brief:
- Construction counted 326,000 unfilled jobs on the last day of July, according to Bureau of Labor Statistics data released Tuesday. That represented a 9.4% increase month over month and a 6.9% increase year over year.
- Of all construction positions, 3.8% went unfilled in July, according to the BLS report. Meanwhile, the number of hires jumped to 366,000, a 14.7% increase month over month and 9.9% increase year over year.
- Construction economists said the report signals an increased demand for construction workers, providing a degree of clarity after several months of mixed results. Still, the tea leaves going forward remain somewhat muddled.
Dive Insight:
The leap in hires meant construction hit a benchmark in bringing in new blood.
“The construction job opening rate rose to the highest level in nearly two years in July,” said Anirban Basu, chief economist for Associated Builders and Contractors. “Contractor hiring also accelerated for the month, while layoff activity slowed. This meaningful improvement in labor demand is a function of insatiable demand for data centers and the accompanying strength in power-related construction.”
The hiring rate, job openings rate and layoff rate indicate contractors want more workers than they can find, a familiar tale for the industry, but one that had been muted for a few months.
“Firms are bringing more people on than they were a year ago, but the increase in openings indicates they still have positions they are looking to fill,” Macrina Wilkins, director of market insights for the Associated General Contractors of America, told Construction Dive. “Meanwhile, the lower layoff rate suggests contractors are holding on to the workers they already have.”
Still, Wilkins cautioned against drawing any conclusions about the labor market as a result of any one factor. Continued, elevated need for skilled workers, difficulty matching the available workforce with the right positions and a loss of workers as a result of increased immigration enforcement could all contribute to the current landscape, Wilkins said.
“Taken together, the July data point to a somewhat firmer construction labor market, with more hiring, more positions available, and fewer workers being laid off than a year ago,” she said.
