Central Florida HBA and School District Team Up on Workforce Initiative

By Industry News

One Central Florida school district is helping to address the workforce shortage by partnering with the local home builders association and its foundation to provide career and technical training alongside its academic curriculum.

Polk County launched Career Academies in its high schools that provide small, personalized learning communities for career and technical training. These programs offer “multiple paths to success,” said Laura Webster, a teacher resource specialist and academy coach of workforce education at Polk County Public Schools.

The construction academies were developed in conjunction with a long-standing partnership between the Polk County School District and the Polk County Builders Association (PCBA) and its PCBA Foundation. There are currently six Polk County high schools utilizing the Home Builders Institute’s PACT curriculum, preparing students for careers in construction. Approximately 900 students graduated from the programs this past school year.

The workforce training program, and collective community support, has helped expand construction education throughout the county. “Polk County is in this together to help the industry and to help our youth,” said Jimmy Giles, lead instructor at Bartow High School’s Academy of Construction.

The students also benefit from the professional connections of their instructors. Although not a requirement, all current construction instructors have industry experience and partnerships with local contractors. “Central Florida is a hotbed for new construction and contractors can’t fill the void,” said Frank Waller, instructor at Lake Region High School. “Many contractors are willing to hire these students right out of high school.”

Construction instructors like Waller and Giles are working to expand mentorship, apprenticeship and employment opportunities for students. The District Advisory Council is also developing the idea of district-wide career fairs.

While COVID-19 disrupted some plans from fully developing this school year, those involved in the programs expect them to be back in full swing next year.

For more information about how NAHB is supporting the industry’s workforce development efforts, visit nahb.org.

Mental Wellbeing Becoming Increasingly Important for Construction Workers

By Industry News

The coronavirus pandemic has put a strain on the mental health of nearly everyone in the world. Economic uncertainty, forced solitude and worries about contracting the virus have increased stress levels in most adults.

But even before the pandemic, construction workers were particularly susceptible to mental health issues and suicide. More construction workers die by suicide each day than all workplace-related fatalities combined with a rate of 43.5 suicides per 100,000 workers, second only to the mining and oil/gas extraction industry.

Following a multi-year initiative to combat opioid misuse in home building, NAHB is launching a new effort focused on member mental wellbeing. Recent research suggests that industry associations have been overlooked as an agent for change, and that they have a role to play in promoting the importance of worker health and wellbeing to their member organizations.

To kick off this initiative, at the recent virtual Spring Leadership Meetings, Cal Beyer, Vice President of Workforce Risk & Worker Wellbeing at construction risk management firm CSDZ, spoke to members of the Construction Liability, Risk Management, and Building Materials Committee and the Construction Safety & Health Committee, which are spearheading the initiative.  During his presentation, “Focus on Workforce Wellbeing: What’s Under the Hardhat,” Beyer described some risk factors that may explain why construction workers are more prone to mental health issues and suicide.

Many skilled trade workers are perfectionists, a trait important to successful work performance. But when combined with deadlines and a physically demanding work environment, it can lead to escalating stress. Construction workers are also traditionally stoic about mental and physical health issues as it may lead to missed work and missed paychecks. Long hours, the cyclical and transient nature of the work, and financial pressure can also lead to mental strain.

While the health of the worker is the primary concern, mental wellbeing should be on the radar of company owners and managers. Stress can lead to illness and absenteeism and, of particular concern, presenteeism – being physically present at work but distracted and “half there.” A distracted worker is not a safe worker, to themselves and others. Beyer talked about understanding the different signs of stress – physical, psychological and behavioral.

Unfortunately, many construction companies have yet to incorporate mental health, substance abuse, addiction recovery, and suicide prevention into safety, health, and wellness culture and programs. A major reason for this gap is due to stigma.  Beyer concluded his remarks, however, by highlighting some of the positive steps the industry is taking to the promote workplace mental health awareness and reduce the stigma attached to mental health. Beyer and CSDZ have created resources for the construction industry to deal with stress and mental health issues, including resources for employers, a toolbox talk on self-care and suicide prevention resources.

Beyer and other mental health experts advise employers to create a workplace that promotes respect and to offer specific recommendations to all workers, including:

  • Encouraging workers to talk to their families, friends and other trusted people in their lives about their problems
  • Staying hydrated on the job site
  • Eating well-balanced meals
  • Spending leisure time in nature
  • Setting limits on digital information intake, especially political news

Above all, employers should be open to listening to any concerns raised by workers about their stress levels or mental health issues.

NAHB has also joined the Construction Industry Alliance for Suicide Prevention (CIASP) in an effort to raise awareness of the prevalence of suicide in the construction industry. More information on the efforts of the Alliance and NAHB’s member mental wellbeing initiative will be forthcoming.

For any questions about NAHB’s mental wellbeing initiative, contact David Jaffe or Rob Matuga.

Housing Shows Strength as Sales and Permits Rise

By Industry News

The following excerpts were recently published in NAHB’s bi-weekly e-newsletter Eye On the Economy by Chief Economist Robert Dietz:

new home development under constructionConsistent with NAHB’s forecast, home building data are showing signs of leading an emerging economic rebound. While risks to the outlook remain, particularly in the form of local, rising virus spread and ongoing layoffs, the recession appears to have taken a short and sharp downturn…

…[In] May, single-family starts held at a flat annual rate of 675,000; however, single-family permits expanded by 12%. Multifamily permits for properties of five units or more are down more than 10% thus far in 2020, as concerns within the rental market continue due to elevated unemployment levels.

For home sales, new single-family home contracts jumped in May (676,000), posting a 13% year-over-year gain after a significant downward revision for the April estimate (revised to 580,000, marking a 25% decline from the pre-recession peak in January). Inventory fell to a sales-adjusted level of a 5.6-month supply. Levels below a 6-month supply generally support growth for new home building.

The increase in builder confidence, permits and sales all suggest construction gains are on the horizon. However, a medium-term concern for the housing market is whether the current strength in demand is an unlocking of deferred demand from early spring, or reflects the emerging trend for home buying as a growing number of prospective buyers are looking in small metro and exurban locations.

To subscribe to the Eye on the Economy e-newsletter, email communications@nahb.org.

Continuing Jobless Claims Fall Below 20 Million

By Housing

Weekly initial jobless claims totaled 1.48 million in the week ending June 20 and continuing claims, which lags initial jobless claims by one week, declined by 767,000 to 19.52 million in the week ending June 13. The data indicate that the labor market is gradually recovering from the COVID-19 crisis as workers return to work, albeit slowly, and a full recovery of labor market may take a while.

The U.S. Department of Labor released the Unemployment Insurance Weekly Claims Report for the week ending June 20. The number of initial jobless claims declined slightly by 60,000 to a seasonally adjusted level of 1,480,000, compared to the revised previous week’s claims of 1,540,000. It marks the 12th straight decline in initial claims after it jumped to 6.9 million during the week of March 28. The four-week moving average decreased to 1,620,750, from a revised average of 1,781,500 in the previous week. Weekly new claims brought the 14th week’s total to 47.3 million.

Meanwhile, the number for seasonally adjusted insured unemployment, known as continuing claims, declined by 767,000 to a seasonally adjusted level of 19,522,000 in the week ending June 13. It is the first week that continuing claims fell below 20 million since the COVID-19 pandemic began. The four-week moving average was 20,421,250, a decrease of 329,750 from the previous week’s revised average. The seasonally adjusted insured unemployment rate declined by 0.5 percentage point to 13.4% for the week ending June 13. The previous week’s rate was revised down by 0.2 percentage point from 14.1% to 13.9%.

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 1,457,373 in the week ending June 20, a decrease of 5,990 from the previous week.

The chart below presents the top 10 states ranked by the number of advanced initial claims for the week ending June 20. California, Georgia and Florida had the most advanced initial claims. California led the way with 287,354 initial claims, followed by Georgia with 124,283 initial claims and Florida with 93,394 initial claims. Meanwhile, it is the fourth straight week that South Dakota, Vermont and Wyoming had the least advanced initial claims across all the states.

Compared to the previous week, California, Maryland and Indiana had the largest increases in advanced initial claims for the week ending June 20. California reported an increase of 45,930 advanced initial claims, much larger than other states. Maryland increased by 8,494 and Indiana increased by 7,868. Oklahoma (-35,571), Kentucky (-13,022) and Oregon (-8,908) had the largest decreases in advanced initial claims.

Mortgage Activity Decelerates

By Housing

The Mortgage Bankers Association’s (MBA) latest Weekly Application shows a mild slowdown in purchase and refinancing activity from the previous week, on a seasonally adjusted basis. The Market Composite Index decreased by 8.7% and its constituent Purchasing and Refinancing indices decreased by 3.0% and 11.7%, respectively. The MBA’s 30-year fixed-rate mortgage rate remained unchanged from the previous week at the record low of 3.3%. Despite the dip on a weekly basis, purchase mortgage applications are 18% higher on a year over year basis.

The MBA cites the offsetting effects between the release of pent-up housing demand against the tight supply of housing as factors that may crimp future growth. Moreover, additional housing inventory is needed to give buyers more options. Of late, new home buyer preferences gravitated towards sales of homes not yet built, as the biggest sales jump was in this category, on a year-over-year basis. Combined with the presence of challenging housing inventory, it may explain why purchasing waned this week.

It should be noted that the purchasing share of mortgage activity increased from the previous week by almost 2%. The Purchasing Index’s mild decline in the current week reflects a relatively lower level with respect to 1990, as indicated in the above figure.

Share of Builders Cutting Home Prices Drops from 22% to 15%

By Housing

As lockdown orders began to ease in May and June 2020, housing data rebounded quickly, providing evidence that this industry is positioned to lead the economy forward. Single-family permits rose almost 12% in May, mortgage applications are at their highest level since January 2020, and builder sentiment, measured by the NAHB/Wells Fargo Housing Market Index (HMI), jumped 21 points in June – the highest one-month increase in the series history.

At the onset of the COVID-19 pandemic, there were rumors about builders lowering home prices as a result of the crisis. Last month’s HMI survey revealed that in fact only 22% of builders nationwide cut prices in April 2020. This month’s survey reveals that the share of builders reducing prices to bolster sales dropped even lower in May 2020, down to 15%. For historical context, 49% of builders cut prices in March 2008, in the midst of the last housing recession (Figure 1).

Builders who did reduce home prices in May 2020 cut them by an average of 5%, the same discount reported a month earlier. In contrast, builders were reducing home prices more aggressively in May 2007 (7%) and March 2008 (8%) (Figure 2).