Federal, construction jobs drop, but other sectors rise
The number of job openings held steady at roughly 7.2 million in August compared to the previous month with some of the biggest dives in the construction industry while jobs in the hotel and food service sector were up, the U.S. Bureau of Labor Statistics said Tuesday.
Overall openings increased slightly by 19,000. The number of people hired was down by 114,000, while the number of workers who voluntarily left their jobs was down by 75,000.
Notable declines included the construction sector, where openings decreased by 115,000, and in the federal government, where they dropped by 61,000, according to the bureau. On the plus side, retail openings rose 55,000; healthcare and social assistance was up 81,000; and hotel and food service openings increased by 106,000.
On a regional basis, openings rose in the South and Midwest but declined in the Northeast and West.
Job openings are measured by the number of opportunities available on the last business day of the month.
Confidence in the economy turns downward
Consumers’ sense of the strength of the U.S. economy fell to its lowest level this month since April, the Conference Board said Tuesday. The nonprofit group measures people’s confidence in business conditions and job availability.
“Consumers’ write-in responses showed that references to prices and inflation rose in September, regaining its top position as the main topic influencing consumers’ views of the economy,” Stephanie Guichard, senior economist for the group, said in a statement. Tariffs were secondary, though many people the group surveyed associate tariffs with higher prices.
People under the age of 35 were more confident this month about the economic situation, but the opposite was true for older Americans, according to the report.
This comes on the heels of Friday’s report by the University of Michigan Institute for Social Research that consumer sentiment was down 5% this month.
FTC sues Zillow and Redfin over rental advertising deal
The Federal Trade Commission filed a lawsuit Tuesday alleging that Zillow and Redfin had entered into an "illegal agreement to dismantle Redfin as a competitor" for rental advertising on the internet.
The FTC alleges that Zillow paid Redfin at least $100 million.
It was framed as a partnership, the FTC said, but it was "an end run around competition that insulates Zillow from competing head-to-head on the merits" and violates antitrust laws.
The FTC said the agreement will "likely lead to higher prices and worse terms for multifamily unit advertising." The complaint seeks to end the agreement and "contemplates a potential divestiture of assets or the reconstruction of businesses to restore competition."
A Zillow spokesperson told The Wall Street Journal that "it is pro-competitive and pro-consumer by connecting property managers to more high-intent renters so they can fill their vacancies and more renters can get homes. We remain confident in this partnership and the enhanced value it has delivered and will continue to deliver to consumers."
Redfin told the news site that the partnership enabled it to invest more in its product, "directly benefiting apartment seekers."
Additional federal tariffs set on lumber, other products
The cost of purchasing a new home is about to increase.
President Donald Trump announced a new wave of tariffs aimed at increasing domestic manufacturing. Starting Oct. 14, there will be 10% tariffs on imports of softwood timber and lumber and 25% levies on kitchen cabinets, vanities and upholstered wood products.
The pressure will intensify starting Jan. 1 when tariffs increase on upholstered wooden products to 30% and cabinets to 50%, according to Trump’s Truth Social post last week.
These moves follow the Commerce Department’s earlier decision to raise duties on Canadian lumber from 14.5% to 35%, according to the National Association of Home Builders.
Builders have already been bracing for the impact. PulteGroup warned in its first-quarter earnings about a 1% increase in construction costs in the back half of the year because of the new tariffs.
Now, fresh data from UBS shows that the average cost to build a home will increase by about $1,000, excluding upholstered wood products, bringing the total estimated tariff impact to nearly $8,900 per home.
UBS housing analyst John Lovallo noted that “this cost impact will be spread throughout the entire housing value chain, with the builders perhaps best positioned to push back on suppliers.”
Public homebuilders may be able to negotiate with suppliers due to their scale. As the U.S. ramps up domestic lumber production, Lovallo added, “in our view, the combination of these factors could help offset some of the pressure from lumber duties.”