Dive Brief:
- The U.S. construction industry had 374,000 job openings in June, down 5,000 from May, a drop of about 0.1%, according to data from the Bureau of Labor Statistics released Tuesday.
- About 4.5% of construction jobs went unfilled in June. The monthly report from BLS counts unfilled positions employers currently seek to staff. That number dropped 9,000 from June 2022.
- The number of quits dropped nationwide in June, and construction saw the third largest drop of all industries: 51,000 fewer workers quit in June than in May.
Dive Insight:
Despite the slight drop in open jobs and a reduction in quits, contractors’ labor woes are far from over, according to Anirban Basu, chief economist for Associated Builders and Contractors.
“Some will focus on the fact that construction job openings declined in June,” Basu wrote in the press release. “But the real story is that, despite massive interest rate increases and tighter credit conditions facing developers and others that purchase construction services, the number of unfilled jobs remains so elevated by historical standards.”
Last month, Basu wrote that workers wield more power in labor negotiations, and that trend will continue in the coming months. That doesn’t show signs of stopping.
As contractors continue to indicate they intend to increase staffing over the next six months, many will continue to struggle to recruit and retain the skilled craftspeople they need to deliver projects, Basu said.