Job Openings Decline Significantly as Economy Slows
Consistent with dismal mood data, the number of job vacancies in the overall economy and construction declined in March as firms paused hiring plans amid a broader economic downturn, according to the March Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) Survey.
The number of open jobs in the total economy fell from 7.48 million in February to 7.19 million in March.
This is significantly lower than the 8.09 million estimate from a year ago, indicating a weakened aggregate labor market.
A previous NAHB study indicated that this figure needed to fall below 8 million consistently for the Federal Reserve to act on interest rate reductions.
With national job opportunities expected to continue below 8 million, the Fed should be able to cut even further, notwithstanding a recent pause.
However, tariff plans may cause the Fed to stop in the coming quarters.
The number of open construction sector jobs decreased from a revised 286,000 in February to 248,000 in March.
Nonetheless, the number of open, unfilled construction jobs is significantly lower than a year ago (338,000) due to a slowing of construction activity.
The chart below shows the recent fall in the construction job openings rate, which has recently returned to 2019 levels.
The construction job openings rate fell to 2.9% in March, a considerable decrease from 4% the previous year.
In March, the construction layoff rate remained low at 1.7%. The quit rate fell to 1.8% in March.
[Read more about this story at Eyeonhousing.org]
