Construction Job Openings Are Rising, but for How Much Longer?

The count of open, unfilled jobs for the overall economy rose to 10.1 million in April, likely increasing the chance of another rate hike in the months ahead. Job openings are expected to fall in 2023 as the labor market softens, but a recent uptick suggests the Federal Reserve may have to take a more aggressive approach to slow the count of unfilled positions. 

The total count of open construction jobs increased from a revised reading of 315,000 in March to 383,000 in April, but despite that monthly increase, construction sector job openings are slowing after reaching a data series high of 488,000 in December 2022, the National Association of Home Builders' Eye on Housing reports.

The construction job openings rate increased from 3.8% in March to 4.6% in April. The recent trend of these estimates points to the construction labor market having peaked in 2022 and is now entering a stop-start cooling stage as the housing market adjusts to higher interest rates.

Despite the weakening that will occur in later in 2023, the housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory. Hiring in the construction sector slowed to 4.5% in April after a 4.9% reading in March. The post-virus peak rate of hiring occurred in May 2020 (10.4%) as a post-covid rebound took hold in home building and remodeling.

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