The construction industry recorded 305,000 job openings on the last day of June, according to an Associated Builders and Contractors (ABC) analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS). JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings in June increased by 14,000 and are up by 81,000 from the same time last year.
“Interpreting these data is often challenging,” said ABC chief economist, Anirban Basu. “One could take these figures at face value and conclude construction is thriving and driving demand for workers higher. Indeed, ABC’s Construction Confidence Indicator shows the average contractor expects rising revenues and employment over the next six months.
“But June’s construction spending report indicates overall residential and nonresidential construction spending continues to decline,” Basu added. “Accordingly, one might look for other explanations for rising construction job openings, including demographic considerations.
“Many contractors view a structural shortfall of skilled labor as their primary challenge because many highly experienced, productive workers are retiring. It is conceivable these workers are being replaced with less skilled and productive workers, thereby requiring a few workers to be replaced by many. Alternatively, the data may not be capturing all that transpires,” Basu stated.
