The construction industry recorded 434,000 job openings in May, according to an analysis by Associated Builders and Contractors (ABC) of data from the Bureau’s Job Openings and Turnover Survey (JOLTS) of Labor Statistics of the United States.
The JOLTS survey defines a job posting as any vacant position for which an employer is actively recruiting. Job vacancies in the industry fell by 6,000 in May, but rose by 126,000 from the same month last year.
Construction workers again left their jobs at a faster rate than they were laid off or laid off in May. The quit rate of 2.9% was significantly higher than the layoff/firing rate of 1.4%. May marked the 15th consecutive month in which resignations exceeded or equaled layoffs and dismissals.
“Signs of an economic slowdown have become more widespread in recent weeks and are now increasingly reflected in labor market data,” said ABC chief economist Anirban Basu. “In response to rising interest rates and falling asset values, corporate layoffs have increased. Today’s JOLTS report says the number of open and unfilled job vacancies is now down, with the number of economy-wide unfilled positions at its lowest level since November 2021 This decline is expected to continue in the coming months as many employers switch from running to meet high and unmet demand to preserving cash amid growing recession risks and the pernicious effects of the ‘inflation.
“While some will view today’s JOLTS release negatively, the economic downturn is part of the process needed to rein in inflationary pressures and restore the rate of price increases to pre-pandemic norms,” Basu said. “Contractors have come under significant pressure on their profit margins, according to the most recent data from ABC’s Construction Confidence Index, and any easing in labor shortages will provide much-needed relief.”
Source: ABC
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