Construction Job Openings Rise as Total Economy Count Falls
Because of tightened monetary policy, the count of total job openings for the economy continues to move slower. This is consistent with a cooling economy that is a positive sign for future inflation readings.
In November, the number of open jobs for the economy declined to 8.8 million. This is notably lower than the 10.8 million reported a year ago. NAHB estimates indicate that this number must fall back below 8 million for the Federal Reserve to feel more comfortable about labor market conditions and their potential impacts on inflation.
While the Fed intends for higher interest rates to have an impact on the demand-side of the economy, the ultimate solution for the labor shortage will not be found by slowing worker demand, but by recruiting, training and retaining skilled workers. This is where the risk of a monetary policy mistake can arise. Good news for the labor market does not automatically imply bad news for inflation.
The construction labor market moved in the opposite direction of the overall economy, with the number of open construction jobs rising. The count of open construction jobs increased to 459,000 in November. The rise indicates an ongoing skilled labor shortage for the construction sector. See state-by-state analysis of employment for November 2023.
Attracting skilled labor will remain a key objective for construction firms in the coming years. While a slowing housing market will take some pressure off tight labor markets, the long-term labor challenge will persist beyond the ongoing macro slowdown.
Chief Economist Robert Dietz provides more details in this Eye on Housing post.
Latest from NAHBNow
Jul 29, 2025
NAHB Commends Senate Banking Panel for Advancing Housing LegislationNAHB Chairman Buddy Hughes issued the following statement after the Senate Banking Committee voted to approve the ROAD to Housing Act.
Jul 29, 2025
HBAs Partner with Boys & Girls Clubs to Bring Trades to LifeHBAs across the country are involved with their local Boys & Girls Clubs to expose youth to careers in residential construction.
Latest Economic News
Jul 29, 2025
Construction Job Openings Relatively Unchanged in JuneThe count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the June Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).
Jul 28, 2025
A Warning Sign: Homeownership Rate Declines to Lowest Level Since 2019The latest homeownership rate declined to 65% in the second quarter of 2025, marking its lowest level since late 2019, according to the Census’s Housing Vacancy Survey (HVS).
Jul 25, 2025
Market Share of 5,000+ Square Foot New Homes Started Declines in 2024In 2024, there were 24,000 homes that exceeded 5,000 square feet, equating to a 2.3% market share of all new homes started. Both the number and market share for 5,000+ square foot homes experienced declines from 2023, according to the annual data from the Census Bureau’s Survey of Construction (SOC).