Surprise Data: Unemployment Rate Drops to 13.3% in May

By Housing

In May, the unemployment rate posted a surprise decline to 13.3% and total payroll employment rose by 2.5 million as the economy partially reopened.

Residential construction employment rose by 226,000 in May to 2.7 million, partially reversing a loss of 422,000 in April. Total construction industry (both residential and nonresidential) employment rebounded to 7.0 million in May.

In the Employment Situation Summary for May, total nonfarm payroll employment increased by 2.5 million, after declines of 1.4 million in March and 20.7 million in April. The increase in May is the biggest gain on record as the economy starts to recover from the COVID-19 pandemic. Monthly job changes in March and April were revised down. The March increase was revised downward from an initial estimate of -881,000 to -1.4 million, while the April increase was revised downward by 150,000 from -20.5 million to -20.7 million. With the revisions, the economy lost 22.1 million jobs in March and April due to the impact of the COVID-19 pandemic.

After the widespread loss in all the major sectors in April, many industries sectors increase in May. Employment in leisure and hospitality, construction, education and health services, and retail trade had the largest gains in May, while government employment continued to decline sharply.

Meanwhile, the unemployment rate dropped to 13.3% in May, down from a recent high in April. In May, the number of employed persons increased by about 3.8 million, while the number of unemployed persons declined by 2.1 million to 21.0 million. Among all the unemployed persons, about 73% classified themselves as on furlough or a temporary layoff and expected to be recalled back to work. The labor force participation rate, the proportion of the population either looking for a job or already with a job, rose by 0.6 percentage point to 60.8% in May, following a decrease of 2.5 percentage points in April.

The surprise decline in the unemployment rate and dramatic job gains are very good news amid the COVID-19 pandemic, showing early signs of recovery as states start to reopen and businesses call back workers. These better than expected job situation is also a cause behind recent relative strength in housing demand.

Additionally, employment in the overall construction sector increased by 464,000 in May, after a revised decrease of 995,000 in April. The number of residential construction jobs rose by 226,000 in May, after the largest drop in April.

Residential construction employment now stands at 2.7 million in May, broken down as 783,000 builders and 2.0 million residential specialty trade contractors. The 6-month moving average of monthly job changes for residential construction is -29,100 a month, reflecting the largest job loss in April. Over the last 12 months, home builders and remodelers shed 148,400 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 764,300 positions.

In May, the unemployment rate for construction workers dropped to 15.2% on a seasonally adjusted basis, from 16.1% in April. The unemployment rate for construction workers has trended downward for the past ten years and remained at a relative low level in the beginning of 2020. The unemployment rate in April and May reflected the impact of the COVID-19 pandemic on construction industry.

2020 Virtual Legislative Conference Set for June 22-24

By Industry News

With the housing industry and economy facing unprecedented challenges because of the COVID-19 pandemic, this year’s Legislative Conference takes on added importance as it moves from in-person meetings to a special three-day virtual event running from June 22-24.

The power of the home-building industry lies with its grassroots advocacy efforts. Participating virtually in this year’s Legislative Conference will give more NAHB members the unparalleled opportunity to:

  • Lobby members of Congress to protect their business and industry;
  • Establish constructive working relationships; and
  • Ensure that NAHB’s issues and matters pertaining to your state and local community are heard by Washington policymakers.

These meetings, typically held on Capitol Hill in Washington, D.C., are a critical part of the Federation’s advocacy efforts to keep housing issues a priority with federal lawmakers.

Your participation can make a huge difference. Now, more than ever, it is critical for lawmakers to understand the industry’s key issues as housing is poised to play a critical role in the nation’s economic recovery.

Preparing for the Virtual Legislative Conference

Your first step is to schedule the virtual meetings with your members of Congress. Use the links below to find your member of Congress and schedule a meeting:

All associations are invited to utilize the video or audio technology platform of their choosing.  HBAs and members should continue to follow their state or local jurisdiction with respect to minimizing the number of people at meetings and gatherings.

Please contact Lauren Goodwin at 1-800-368-5242 x8639 once your meetings are scheduled to test your technology.

More information on the 2020 Legislative Conference can also be found at nahb.org/legcon, including video messages from House Minority Leader Kevin McCarthy and House Minority Whip Steve Scalise.

BUILD-PAC Leader Shares Recruitment Strategies

By Industry News

Twenty years ago, 2019 Capitol Club Chairman Jules Guidry joined NAHB because he was inspired by his friend and 2018 NAHB Chairman Randy Noel. The Louisiana native “wanted to join the fight for our industry.” He took another step to fight for housing when he started investing in BUILD-PAC seven years ago and again when he stepped up to the Capitol Club level in 2017.

Guidry was appointed Capitol Club chair in 2019 by then BUILD-PAC Chairman Carl Harris. He happily accepted his new role and wasted no time thinking of new ways to help recruit Capitol Club members while also working hard to retain loyal, longtime members. While Guidry was chair, the Capitol Club grew 15%.

Earlier this year, Guidry hosted a dinner to recognize Capitol Club members in his home state of Louisiana. He invited special guests Carl Harris, 2019 BUILD-PAC chairman, and Jim Tobin, NAHB’s chief lobbyist, to attend and give a special update on NAHB’s advocacy efforts at the federal level. Once his guest speakers were confirmed, he felt it would be a “fabulous recruiting opportunity” as well. He ended up recruiting nine new Capitol Club members, bringing Louisiana’s total to 16; the state is now tied with Texas as the state with the most members.

He attributed his success to “carefully planning a list of potential new donors who were less active, would be surprised to hear the level of impact that federation advocacy had directly on their bottom line and were able to contribute at the highest donor level.” Guidry believes that this type of preparation would increase the chance of success for other fundraising events throughout the country.

During his time as Capitol Club chairman, Guidry enjoyed meeting his fellow club members at dinners and at the hospitality suite at NAHB board meetings. His advice for the next Capitol Club chairman is to “introduce yourself to as many Cap Club members as you can and learn what motivates them to contribute at the Cap Club level. Promote, promote, promote Cap Club!”

If you are interested in more information regarding the Capitol Club or other high donor clubs, please click here or visit the BUILD-PAC Facebook page to connect with members.

Initial Jobless Claims Continue to Fall

By Housing

The U.S. Department of Labor released the Unemployment Insurance Weekly Claims Report for the week ending May 30th. Weekly initial claims fell below 2 million for the first time since the week ending March 14th. Continuing claims, which lags initial jobless claims by one week, rose slightly to nearly 21.5 million in the week ending May 23rd. The data indicate workers are returning to work, albeit slowly, as economy reopens in phases.

In the week ending May 30th, the number of initial claims declined by 249,000 to a seasonally adjusted level of 1,877,000, compared to the revised previous week’s claims of 2,126,000. Weekly initial jobless claims have declined for the past nine straight weeks after it hit a record peak of 6.9 million in the week ending March 28th. The four-week moving average decreased to 2,284,000, from a revised average of 2,608,750 in the previous week. This week’s new claims brought the eleven-week total to nearly 42.6 million.

Meanwhile, the number for seasonally adjusted insured unemployment, known as continuing claims, rose slightly to 21,487,000 in the week ending May 23rd, after the first drop in the previous week. It was still below the highest point of 24.9 million in the week ending May 9th. The four-week moving average was 22,446,250, a decrease of 222,500 from the previous week’s revised average. The seasonally adjusted insured unemployment rate increased by 0.5 percentage point to 14.8% for the week ending May 23rd. The previous week’s rate was revised down by 0.2 percentage point from 14.5% to 14.3%.

The U.S. Department of Labor also released the advanced number of actual initial claims under state programs without seasonal adjustments. The unadjusted number of advanced initial claims totaled 1,603,000 in the week ending May 30th, a decrease of 314,604 from the previous week.

The chart below presents the top 10 states ranked by the number of advanced initial claims for the week ending May 30th. California, Florida and Georgia reported the most advanced initial claims. California led the way with 230,461 initial claims, followed by Florida with 206,494 initial claims and Georgia with 148,095 initial claims. Vermont, South Dakota, and Wyoming had the least advanced initial claims across all the states.

Compared to the previous week, Florida (+31,083), California (+27,199), and Mississippi (+89) were the only three states that reported the increases in advanced initial claims for the week ending May 30th. New York (-106,106), Michigan (-23,539), and Texas (-20,896) had the largest decreases in advanced initial claims.

Going Virtual: How Members are Connecting from Behind a Screen

By Industry News

Virtual meetings and events have become the new normal for our daily lives and work routines. As more business is conducted online, HBAs are getting creative with how they engage with members. From Zoom meetings to virtual happy hours and coffee chats, online gatherings are a powerful channel to keep communications flowing within HBA communities.

But hosting a virtual gathering does not have to be a daunting task. HBA leaders are diligently working to keep their members connected, and a few of them recently shared some of their tips for success.

Focus on What Matters

MSBIA members gather for a virtual event.

When brainstorming ideas for their virtual meeting schedule, Manatee-Sarasota Building Industry Association (MSBIA) Membership Director Desiree Hanright said her team zeroed in on what was most meaningful to members. They focused on holding routine meetings and began hosting town hall events with community leaders to keep members informed about the current climate and regulations in Florida.

Hanright said MSBIA always tries to mix in the fun, lighthearted events members were accustomed to prior to the COVID-19 pandemic. Quarantine Trivia Bingo & Networking mixers, Lego building contests and happy hours continue to be a huge hit with the MSBIA membership.

“Our members genuinely enjoyed the human interaction and asked for more,” said Hanright. MSBIA is planning on bringing back events that were initially cancelled and moving them online.

Adapt Your Content

Social-distancing requirements present myriad challenges to coordinating events. But despite those obstacles, the HBA of Bucks & Montgomery Counties (HBABMC) and the HBA of Chester and Delaware Counties partnered together to host their annual HBA Synergy Awards, celebrating the best of the best in Building & Design and Sales & Marketing. Only this year, the ceremony went digital.

The virtual HBA Synergy Awards ceremony had a variety of humorous moments.

Carla Zapotek, executive officer of the HBABMC, said the hour-long virtual celebration, which had almost 200 attendees, would not have been possible “without everyone’s positive and upbeat personalities.” Using a script and agenda to announce the winners, the evening included humorous member shout-outs in the form of “Breaking News” segments and spontaneous “cheers” breaks when attendees could sip their beverages.

“We heard nothing but good things from our members,” Zapotek said. “It was sad that we could not celebrate in person, but everyone was in great spirits, and we are keeping our minds open as to how we can build upon virtual events like these in the future.”

Make It Personal

Dianne Beaton, MSBIA member and vice chair of the NAHB Membership Committee, is an active participant in virtual events. Over time, Beaton said participation in meetings has increased as people start to get more comfortable.

virtual meeting“Our virtual events are so cool because we can have different themes, see each other in our ‘office’ habitats and show our friends where we live and now work,” said Beaton. “Being creative and getting personal through social happy hours, breakfast meetups on Zoom and learning new technology are helping to keep our Federation connected and moving forward!”

Associations across the country are proving that it’s still possible to successfully serve members, even if it can’t be in-person. Every day there are prime examples of our communities supporting each other, staying strong and pushing forward together.

If HBAs are reluctant to take their communities online, Hanright has some advice. “Do not be scared to think outside of the box and try something new,” she said. “This is an unprecedented time for our country, and our members, more than ever, are interested in trying almost everything.”

For more COVID-19 resources for HBAs, including membership letter templates, informative videos, and legal and safety resources, visit nahb.org.

Senate Approves House-Passed PPP Bill

By Industry News

By unanimous consent, the Senate on June 3 approved legislation passed by the House last week that will liberalize rules under the Paycheck Protection Program (PPP) to give business owners more time to have the loans forgiven by the U.S. government. President Trump is expected to sign the legislation into law shortly.

Under the PPP loan program, which passed Congress earlier this spring as part of the CARES Act, small businesses with fewer than 500 employees can take out loans equal to 2.5 times their average monthly payroll from 2019 with the total capped at $10 million. For many businesses that meet key conditions on the use of these funds, the loans may be forgiven.

The legislation approved by the House and Senate, called the Paycheck Protection Program Flexibility Act, will make it easier for small businesses to utilize funds under the PPP and still qualify for loan forgiveness. Specifically, the bill will:

  • Increase the timeline for businesses to spend their loan money on payroll in order for it to be forgiven from the current eight-week deadline to 24 weeks;
  • Extend the June 30 rehiring deadline for laid-off employees to Dec. 31;
  • Reduce the requirement that 75% of loan money must be spent on payroll in order for the loan to be forgiven  to 60%; and
  • Provide more leeway on loan forgiveness for employers if they show they were unable to rehire employees or reopen to business in a way that complies with safety standards.

NAHB continues to urge Congress to ensure the PPP guidelines align with congressional intent to allow more workers in the residential construction sector to access the loan program. Specifically, NAHB is urging Congress to provide a waiver from eligibility restrictions in the existing Small Business Administration 7(a) loan program to allow single-family and multifamily home builders, land developers, multifamily property owners and 501(c)(6) organizations access to the PPP.