by Olevia Sharbaugh Starkey, Economist at Dodge Construction Network
Total US job openings, as reported by the Bureau of Labor Statistics, came in slightly higher in August, at 8.04 million. This increase of 329,000 from the revised estimate for July comes after two months of steady decline. Though a small increase, it represents a decline of 14% when compared with August of last year. Total hires in the month of August experienced a 2% decline from the previous month to 5.3 million, a 10% decline from August of 2023. The year-over-year declines in both job openings and hires provide further evidence that the labor market has cooled significantly from the post-pandemic highs.
Construction job openings had the largest increase of any other sector in August, rising 138,000 to a total of 370,000. This is the highest number of construction job openings recorded in a single month since February of this year and represents a 60% increase from the revised July estimate of 232,000. On the other hand, the total number of hires for the construction industry declined by 6% from July to 338,000. As we continue to see more interest rate cuts from the Federal Reserve this year and in the future, Dodge Construction Network expects construction starts activity to begin to pick up as well. This steady increase will depend on construction labor availability; however, job openings and hires in the sector will need to be closely watched.
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Data Source: https://www.bls.gov/jlt/