The latest analysis by the National Association of Home Builders (NAHB) reveals the ongoing demand for skilled workers and the importance of addressing labor shortages in the long term. Learn more about the implications of this trend and the strategies needed to attract and retain skilled labor in the construction industry. They revealed that the count of open, unfilled jobs in the overall economy decreased to 9.8 million in May, reflecting ongoing tight labor market conditions. This decline suggests a gradual cooling of macro conditions, potentially leading to one or two more Federal Reserve rate hikes in the coming months. Despite the decrease, the number of open positions remains high, emphasizing the need to address the labor shortage through recruitment, training, and retention of skilled workers.

 
In the construction labor market, job openings saw an increase in May, reaching 366,000 compared to a revised reading of 347,000 in April. According to the NAHB, these figures indicate a cooling trend in open construction sector jobs, influenced by the slowing housing market and reduced backlog. Despite this, the housing market remains underbuilt, requiring additional labor, resources, and materials to meet the demand.

While the construction job openings rate rose from 4.2% in April to 4.4% in May, the recent estimates suggest that the labor market in the construction sector peaked in 2022 and is now entering a stop-start cooling stage due to adjustments in the housing market, impacted by higher interest rates.

NAHB Chief Economist Robert Dietz emphasized the ongoing challenge of attracting skilled labor, stating, "The ultimate solution for the labor shortage will not be found by slowing worker demand, but by recruiting, training, and retaining skilled workers." Despite the potential weakening in the housing market in the latter part of 2023, the need for additional labor and resources to boost inventory remains.


https://www.nahb.org/blog/2023/07/may-job-openings