Construction Jobs Plentiful, but Where are the Workers?
NAHB Chief Economist Robert Dietz recently provided this housing industry overview in the bi-weekly e-newsletter Eye on the Economy.
Economic growth for 2021 is expected to post the best GDP expansion rate since 1984. However, forecasters have been revising down their estimates.
A combination of factors has diminished the bloom of the economic rose: the delta variant wave (although that wave is now easing), concerns over government spending and higher taxes, and ongoing supply-side challenges that are contributing to inflation and point to higher interest rates. As a result, consumer confidence fell to a seven-month low in September.
The Bureau of Labor Statistics employment report for September registered a gain of only 194,000 jobs. Forecasters, including NAHB, were looking for a gain closer to 500,000.
As the unemployment rate fell below 5% for the first time since the recession of 2020, the ongoing labor shortage will grow tighter unless the labor force participation rate recovers and more individuals look for work. Indeed, the number of open, unfilled jobs in the construction sector now totals 344,000.
As of September, residential construction workers totaled 3.1 million, broken down as 882,000 builders and 2.2 million residential specialty trade contractors. Over the last 12 months, home builders and remodelers added 136,300 jobs on a net basis.
Since the low point following the Great Recession, residential construction has gained nearly 1.1 million positions. And more will be needed as the sector continues expanding to meet demand.
To subscribe for free to Eye on the Economy, please visit nahb.org.
Latest from NAHBNow
Energy | Advocacy
Sep 16, 2025
Kansas City Builder Testifies Against Energy Code MandatesThe Home Builders Association of Greater Kansas City (KCHBA) called on Congress today to oppose energy code mandates that raise the cost of housing and do very little to increase energy efficiency for home owners.
Economics
Sep 16, 2025
Builder Confidence Steady but Future Sales Expectations Hit Six-Month HighBuilder confidence in the market for newly built single-family homes was 32 in September, unchanged from the August reading, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today. While builder sentiment has hovered at a relatively low reading between 32 and 34 since May, builders expressed optimism that a more favorable interest rate climate could bring hesitant buyers off the sidelines in the final quarter of 2025.
Latest Economic News
Economics
Sep 16, 2025
Builder Confidence Steady but Future Sales Expectations Hit Six-Month HighBuilder sentiment levels remained unchanged in September but lower mortgage rates and expectations that the Federal Reserve will soon cut the federal funds rate led to higher future sale expectations in the coming months.
Economics
Sep 15, 2025
Shelter Inflation Continued to CoolInflation accelerated to a seven month high in August as tariff-related costs continued to pass through to consumers, according to the Bureau of Labor Statistics’ (BLS) latest report. Core goods prices, which exclude volatile food and energy, rose by 1.5% in August, the fastest annual pace since May 2023.
Economics
Sep 15, 2025
Builders Stay Cautious as Single-Family Permits Extend DowntrendSingle-family housing permits slipped for the seventh month in a row, highlighting affordability headwinds and weak demand. While multifamily permits ticked up, the sector’s volatility leaves the outlook uncertain. The split underscores a housing market still under strain, with single-family softness weighing on broader growth prospects.