Here is a sample of some of the insights included in the report:
The construction sector Employment Cost Index showed that overall labor costs continue to be at or near all‐time highs. The latest data available from Q4 still shows it trending 1.4% higher quarter‐over‐quarter and it was 4.8% higher versus Q4 a year ago.
Job openings in the construction sector were also still elevated at 248,000 through January of 2023. This was down significantly versus the peak hit last year - down 49.2% month-over‐month and down 37.4% year‐over‐year.
This was a significant drop in openings (driven by the drop in single‐family construction), but labor costs have not yet started to materially adjust.
There are two important factors to notice regarding construction material prices. Overall, at a macro level, they remain at elevated levels historically, with current prices well above what would be a normal growth rate.
The trend is also interesting because it had started to drop and then last month there was some stabilizing in the data (mildly reversing course).
© 2023 SVA Certified Public Accountants