Connect with us

Economic News

Construction jobs rise faster than national employment

Construction jobs are doing well as predicted, and with various factors coming into play, both new home construction and remodeling levels reveal a lot about the very slowly improving housing sector.

Published

on

construction jobs

construction jobs

Home construction jobs on the rise

This morning’s March 2013 jobs report shows that construction employment is growing faster than overall national employment, and “relative to the level of construction activity, there are actually a lot of construction jobs,” notes real estate search company, Trulia.com. Residential construction employment grew 3.8 percent in March compared to March 2012, while overall national employment only grew 1.4 percent.

Trulia notes that the number of residential construction jobs per housing unit under construction is actually above the pre-bubble level: there are now 3.7 jobs for every unit under construction, compared to 2.6 in 2001. As the economy continues to see signs of improvement, Trulia notes the sector could see labor shortages.

The caveat to the employment data is that in some metros, construction job growth isn’t keeping up with construction activity. Trulia says These tight markets include San Francisco, San Jose, Washington DC, Denver, Seattle, Orange County, and San Diego. Additionally, the unemployment rate among 25-34 year-olds, the prime age group for housing demand, fell to 7.4 percent in March from 8.5 percent one year ago. Unemployment for 25-34 year-olds is at the lowest level since November 2008. In this age group, 75.4% were employed – up from 74.9 percent one year ago.

Factors that support continued growth

Taking several indicators into account, construction jobs will continue improving alongside housing. The National Association of Home Builders reported a five year high for remodeling in the final quarter of 2011, and a seven year high in the third quarter of 2012. Meanwhile, a new study reveals that buyers have an affinity for newer homes and just last week, the U.S. Census Bureau reported that home construction levels hit a four year high. Combine these together, and get what was once a weak pulse now recovering, and while not yet at pre-recession normal, housing improvement will be led by new home construction.

The challenge for the housing sector remains tight housing inventory levels, and trade groups continue to assert that builders are still struggling with obtaining financing under overly-tight lending conditions. Economists state that these two could ease this year, which means that it is foreseeable that housing jobs could continue to outpace the national employment growth rate and contribute to the national GDP.

Meanwhile, digital catches up with home improvement pros

In February, Zillow launched Zillow Digs which we called a hybrid of Pinterest, Houzz, and Tumblr for home improvement, and the timing is perfect as construction jobs perform so well, including remodeling jobs.

The company this week has updated their iPad app, stating they have “experienced significant growth” since their launch. New features include an updated people search so users can find friends, family, or home improvement professionals by name, and through user-generated content, Zillow Digs has doubled the number of photos in the first seven weeks. In addition, Zillow Digs boasts nearly 60,000 unique user-created boards, featuring beautiful, high-resolution images, inspiring design and innovation for home renovation projects.

zillow

zillow-digs-1

Economic News

Boomers retirement may be the true reason behind the labor shortage

(ECONOMY) Millennials and Gen Z were quick to be blamed for the labor shortage, citing lazy work ethic- the cause could actually be Boomers retirement.

Published

on

Older man pictured in cafe with laptop nearby representing boomers retirement discrimination.

In July, we reported on the Great Resignation. With record numbers of resignations, there’s a huge labor shortage in the United States. Although there were many speculations about the reasons why, from “lazy” millennials to the number of deaths from Covid. Just recently, CNN reported that in November another 3.6 million Americans left the labor force. It’s been suggested that the younger generations don’t want to work but retiring Boomers might be the bigger culprit.

Why Boomers are leaving the labor force

CNN Business reports that 90% of the Americans who left the workplace were over 55 years old. It’s now being suggested that many of the people who have left the labor force since the beginning of the pandemic were older Americans, not Millennials or Gen Z, as we originally thought. Here are the reasons why:

  • Boomers are more concerned about catching COVID-19 than their younger counterparts, so they aren’t returning to work. Boomers are less willing to risk their health.
  • The robust real estate market has benefitted Boomers, who have more equity in their homes. Boomers have more options on the table than just returning to work.
  • Employers aren’t creating or posting jobs that lure people out of retirement or those near retirement age.

As Boomers retire, how does this impact the overall labor economy?

According to CNN Business, there are signs that the labor shortage is abating. Employers are starting to see record number of applicants to most posted jobs. FedEx, for example, just got 111,000 applications in one week, the highest it has ever recorded. The U.S. Bureau of Labor Statistics projects that the pandemic-induced increase in retirement is only temporary. People who retired due to the risk of the pandemic will return to work as new strategies emerge to reduce the risk to their health. With new varients popping up, we will have to keep an eye on how the trend ultimately plays out.

Continue Reading

Economic News

Is the real estate industry endorsing Carson’s nomination to HUD?

(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

Published

on

NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…

>>>>>Click to continue reading…<<<<<

#CarsonHUD

Continue Reading

Economic News

Job openings hit 14-year high, signaling economic improvement

The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.

Published

on

young executives

job openings

Job openings hit a high point

To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.

bar
The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.

Good news, bad news, depending on your profession

That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.

Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.

What’s next

If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.

If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.

Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.

#JobOpenings

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!