However, he added, “June’s construction spending report indicates that overall residential and nonresidential construction spending continues to decline. Accordingly, one might look for other explanations for rising construction job openings, including demographic considerations.”

In June, new hires reached 323,300, up 41,000 since the previous May but down 27,000 year-over-year. Total separations, such as layoffs, discharges and quits, rose 23,000 for the month, with a decline of 38,000 for the year. The monthly increase in this subset consisted largely of quits, as layoffs fell by 2000.

“Many contractors view a structural shortfall of skilled labor as their primary challenge because many highly experienced, productive workers are retiring,” said Basu. “It is conceivable that these workers are being replaced with less skilled and productive workers, thereby requiring a few workers to be replaced by many.”

Basu also noted that changes in immigration policy may be affecting the number of openings. “At least some [workers without proper documentation] are no longer available at jobsites, inducing faster hiring and expanding job openings as contractors work to replace them.”

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