House Approves NAHB-Supported Workforce Development Bill
The House has approved NAHB-supported legislation that would reaffirm congressional support for Job Corps and help address the nation’s skilled labor shortage.
H.R. 6655, the A Stronger Workforce for America Act, would make meaningful investments to prepare students for careers in the construction industry, better fund federal workforce development programs that serve the nation’s most vulnerable job seekers, and introduce reforms that will provide new funding and incentives for workforce education.
Of particular importance to NAHB and the housing community, the legislation reaffirms congressional support for Job Corps, the nation’s most successful career preparation program for disadvantaged youth. NAHB’s workforce training affiliate, the Home Builders Institute, is building the next generation of skilled tradespeople and is the largest Job Corps national trades training contractor.
Addressing the nation’s skilled labor shortage, particularly those trades involved in home construction, is an issue of utmost importance to NAHB and the housing community. In any given month, there is a shortage of roughly 400,000 construction workers, and this lack of workers has resulted in housing construction delays and higher home building costs.
In a letter of support for H.R. 6655 sent to House lawmakers before final vote, NAHB said that this bill would ensure the home building industry has a robust pipeline of skilled labor. “Building more homes and apartments is the only way to tame inflation, meet demand and ease the out-of-control affordability crisis,” the letter stated. “Without a qualified and able workforce, none of this is achievable.”
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The U.S. labor market rebounded in October, with nonfarm payroll employment increasing by 165,000 jobs and the unemployment rate declining to 4.1%. However, the improvement in overall employment contrasts with continued weakness in residential construction, where employment fell by 16,400 jobs, the largest monthly decline since March 2021.
New multifamily housing confidence weakened year-over-year in the third quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 41, down five points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, also down five points year-over-year.
Mortgage application activity declined in October as the 30-year fixed mortgage rate rose sharply again. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, fell 14.1% month-over-month in October on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were 39.8% lower.