NAHB economist says labor could get even tighter

According to Robert Dietz, chief economist of the National Association of Home Builders (NAHB), the labor challenge in the construction market is expected to escalate.

In a post written by Dietz on NAHB Now, the economist points to the latest data from the Bureau of Labor Statistics. With the overall economy having 9.2 million unfilled jobs, nearly 300,000 are in the construction sector. 

As the economy added 850,000 jobs the unemployment rate stood at 5.9% last month.

But residential construction added just 15,200 jobs while nonresidential construction lost 22,600 positions.

“More workers are needed in the construction industry for housing supply to increase,” Dietz wrote in his column. “For this to happen — both in construction and the overall economy — labor force participation needs to improve off its current 61.6% rate.”

To read the complete column from Dietz, along with his outline of other construction industry challenges, click here.