U.S. Construction Labor Market To Bounce Back

According to a recent labor report, the labor market is expected to open 170,000 jobs. Although it is slightly down than November 2023 the unemployment rate will also tick to 3.7%. 

The main question here is will the labor market bounce back in full swing post-pandemic crisis? 

The infrastructure and construction operations are witnessing an increase in the chain of supply and demand.

With growing residential and commercial projects, all the modern age to conventional contractors will be posting vacancies.

As per the U.S. news, this will give rise to career opportunities for both the fresh and skilled labor population of the nation.

How’s The State Compensating?

As per the private payroll organization named “ADP”, December 2023 ended by producing 115,000 construction jobs which was 103,000 back in November 2023.

The payroll growth will be evident as per the senior economist at Wells Fargo, Sam Bullard. According to him, the heavy equipment suppliers and traders have gone through a decline in sales due to excessive taxes and a lack of resources. The unavailability of resources has created a void in vacancies resulting in abrupt layoffs.

Additionally, as per the employment surveys and jobless ratio in the construction labor sector, the resumption rate has seen noticeable strikes.

As compensation, now the U.S. government is hyper actively funding construction loan programs under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).

The Impact Of Tax Leverage On Labor Market Normalization

However, by the first quarters, the laborers will see job growth, especially in the heavy-moving machinery sectors according to Bullard. The labor demand will be likely to cool down which will normalize employment opportunities.

This will also give a small jump of 2% increment in the labor wages to withstand with current global inflation crisis especially the one overshadowing the construction industry.

Conversely, steady interest rates on new or used construction equipment will require heavy equipment suppliers to develop a coping strategy.

The tax leverage on heavy-moving machinery will lend some amazing sales opportunities that will compensate for the potential drawbacks, financially.

Economists are expected to bring positive news to heavy equipment suppliers with biannual funding plans in March and May.

What’s Coming Ahead?

The increasing number of job opportunities clearly presents that the U.S. construction labor market is readily moving towards betterment.

The bouncing rate indicates that expert and fresh laborers will fill the room, mitigating the post-COVID loss the industry has gone through.

According to EY’s Chief Economist, Daco, the construction industry’s economy will see an addition of 2.74 million jobs nationwide. That means there will be 230K job openings per month which reflects one of the strongest employment growth since 2015 in the U.S. The year 2024 will stand tall in providing stable payroll gain to the laborers.

The probate sector will witness around 185,000 job openings, while the government sector will contribute by providing 175,000 opportunities.

So if you are willing to rejoin as a project engineer or gain experience as a construction intern, the right time is NOW!