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The count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the June Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).

The number of open jobs for the overall economy decreased slightly from 7.71 million in May to 7.44 million in June. This is about equal to the 7.41 million estimate reported a year ago but reflects a softened aggregate labor market.

Previous NAHB analysis indicated that this number had to fall below 8 million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below 8 million for national job openings, the Fed, in theory, should be able to cut further despite a recent pause. There is growing pressure on the Fed to do so.

The number of open construction sector jobs was effectively unchanged from a revised 232,000 in May to 246,000 in June. This nonetheless marks a reduction of open, unfilled construction jobs than that registered a year ago (285,000) due to a slowing of construction/housing activity. The chart below notes the recent decline for the construction job openings rate, which is now near the lows of 2019.

The construction job openings rate ticked up to 2.9% in June, although it is significantly lower year-over-year from 3.4%.

The layoff rate in construction held at 2% in June. The quits rate declined to 1.9% in June, up from 1.6% from a year ago.

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Nonfarm payroll employment increased in 27 states in June compared to the previous month, while employment decreased in 23 states and the District of Columbia. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 147,000 in June following a gain of 144,000 jobs in May.

On a month-over-month basis, employment data was most favorable in Ohio, which added 10,400 jobs. Illinois came in second (+9,400), followed by Georgia (+9,100). Meanwhile, a total of 108,700 jobs were lost across 23 states and the District of Columbia, with Florida reporting the steepest job losses at 20,000. In percentage terms, employment increased the highest in Alaska at 0.9%, while Rhode Island saw the biggest decline at 0.5% between May and June.

Year-over-year ending in June, 1.8 million jobs have been added to the labor market, which is a 1.1% increase compared to the June 2024 level. The range of job gains spanned from 2,800 jobs in Vermont to 198,300 jobs in Texas. Four states and the District of Columbia lost a total of 14,400 jobs in the past 12 months, with Iowa reporting the steepest job losses at 6,800. In percentage terms, the range of job growth spanned 0.1% in Massachusetts to 2.9% in South Carolina. The range of job losses in Maine, Rhode Island, Montana, Iowa, and The District of Columbia spanned 0.1%-0.8%.

Construction Employment
Across the nation, construction sector jobs data —which includes both residential and non-residential construction—showed that 21 states reported an increase in June compared to May, while 26 states and the District of Columbia lost construction sector jobs. The three remaining states, Hawaii, Mississippi, and New Hampshire, reported no change on a month-over-month basis. California, with the highest increase, added 3,800 construction jobs, while Texas, on the other end of the spectrum, lost 4,100 jobs. Overall, the construction industry added a net 15,000 jobs in June compared to the previous month. In percentage terms, Montana reported the highest increase at 1.9% and South Dakota reported the largest decline at 1.6%.

Year-over-year, construction sector jobs in the U.S. increased by 121,000, which is a 1.5% increase compared to the June 2024 level. Texas added 20,900 jobs, which was the largest gain of any state, while Washington lost 11,300 construction sector jobs. In percentage terms, New Mexico had the highest annual growth rate in the construction sector at 14.8%. During this period, Washington reported the largest decline of 5.0%.

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Remote work may no longer dominate the U.S. labor force as it did during the height of the pandemic in 2020, but it still represents a substantial share of employment today. According to the latest data from the Current Population Survey (CPS), approximately 34.3 million employed people teleworked or worked at home for pay in April 2025. The telework rate, which represents the number of people who teleworked as a percentage of people who were working, was 21.6% in April, and it has consistently ranged between 17.9% and 23.8% between October 2022 and April 2025.

Of those who teleworked in April, more than half teleworked for all their working hours, while the remaining teleworked for some, but not all, of their work hours.

The distribution of telework across the U.S. workforce continues to reflect deeper patterns shaped by gender, age, education, occupation, and industry. The following insights are based on an analysis of monthly CPS data.

Gender: Women Lead in Telework

Women continue to outpace men in remote work participation.

Nearly 25% of employed women worked from home in April 2025.

In contrast, about 19% of employed men teleworked.

This gender gap reflects employment trends. Many women are employed in professional, administrative, or office-based roles. These fields transitioned smoothly to remote work during the pandemic and have largely maintained hybrid or fully remote options. Additionally, the growing rate of college completion among women1 has pushed more women into positions that are structurally suited to telework. Flexibility remains a priority, especially for women balancing work and caregiving responsibilities, further reinforcing the demand for work-from-home arrangements.

Age: Older Workers Are More Likely to Telework

Age also plays a major role in who works remotely. Workers aged 25 and older are more likely to telework than their younger counterparts.

Ages 16–24: Only 6.2% worked from home.

Ages 25–54: About 24% reported teleworking.

Ages 55+: Around 23% worked remotely.

Younger workers tend to fill entry-level roles in retail, hospitality, and service sectors that require in-person attendance. Meanwhile, older workers are more likely to have progressed in their careers into managerial or specialized roles where remote work is feasible or even expected.

Education: Higher Degrees, Higher Telework Rates

Education remains one of the strongest indicators of telework status. Higher educational attainment is positively associated with a higher telework rate.

No high school diploma: Just 3.1% worked remotely.

High school graduates, no college: 8.4% teleworked.

Some college or associate degree: 17.3% reported working from home.

Bachelor’s degree or higher: 38.3% worked remotely.

Higher educational attainment often leads to employment in knowledge-based sectors such as finance, information technology, consulting, and research. These roles often depend on digital communication tools and independent project-based tasks, making them well-suited for remote settings.

Occupation: Business and Financial Operations, and Professionals Dominate Remote Work

Not surprisingly, occupation heavily influences access to teleworking. Jobs that require physical presence, such as those in food service, transportation, manufacturing, and construction, naturally offer limited remote opportunities. In contrast, people employed in professional and technical fields report the highest telework rate, especially those working in computer and mathematical roles.

Industry trends mirror these occupational divisions. Certain sectors have fully embraced telework, particularly finance, information services, and professional and business services. These industries often prioritize flexibility and are structured in ways that make remote work not only possible but efficient. On the other hand, industries like construction, leisure and hospitality remain firmly grounded in physical spaces and in-person involvement. In these fields, work is inherently tied to locations and equipment that cannot be replicated remotely. The construction industry had a telework rate of just 9.8% in April, and leisure and hospitality reported an even lower rate of 8.1%.

Looking Ahead:

Remote work is not disappearing; it is evolving. The opportunity to work from home is increasingly concentrated among individuals with higher education levels, white-collar job titles, and positions in tech-driven or office-based industries. Meanwhile, those who are younger, have less educational attainments, or work in manual or service-based roles remain largely tied to traditional, in-person work.

For the future, we don’t know if telework will expand to become more inclusive or continue reinforcing existing divides in education and job roles. For now, the data suggests that remote work is here to stay, but only for some.

Note:

“U.S. women are outpacing men in college completion, including in every major racial and ethnic group”, Pew Research Center.

Connor Borkowski and Rifat Kaynas, “Telework trends,” Beyond the Numbers: Employment & Unemployment, vol. 14, no. 2 (U.S. Bureau of Labor Statistics, March 2025),

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The U.S. labor market continued to show resilience in June, with steady job gains led by state/local government and health care sectors. The unemployment rate edged down to 4.1%, signaling ongoing strength in hiring despite persistent economic uncertainty. However, there were some indications that the headline number overstated the health of the labor market, including slowing wage growth and much of the job gains concentrated in state/local government.

In June, wage growth slowed. Year-over-year, wages grew at a 3.7% rate, down 0.1 percentage point from the previous month. Wage growth has been outpacing inflation for nearly two years, which typically occurs as productivity increases.

National Employment

According to the Employment Situation Summary reported by the Bureau of Labor Statistics (BLS), total nonfarm payroll employment rose by 147,000 in June, following an upwardly revised increase of 144,000 jobs in May. Since January 2021, the U.S. job market has seen 54 consecutive months of job growth, making the third-longest period of employment expansion on record. In 2025, monthly employment growth has averaged 124,000, compared with the 168,000 monthly average gain for 2024.

The estimates for the previous two months were revised upward. The monthly change in total nonfarm payroll employment for April was revised up by 11,000 from +147,000 to +158,000, while the change for May was revised up by 30,000 from +139,000 to +144,000. Combined, the revisions were 16,000 higher than previously reported.

The unemployment rate declined to 4.1% in June. The June decrease in the unemployment rate reflected the decrease in the number of persons unemployed (-222,000) and the increase in the number of persons employed (93,000).

Meanwhile, the labor force participation rate—the proportion of the population either looking for a job or already holding a job—decreased by one percentage point to 62.3%. This remains below its pre-pandemic level of 63.3% recorded at the beginning of 2020. Among individuals aged 25 to 54, the participation rate rose by one percentage point to 83.5%. However, the rate for the prime working-age group (25 to 54) has been trending downward since reaching a peak of 83.9% last summer.

In June, job gains occurred in state/local government and health care. State/local government posted a large 80,000 combined net job gain for June, while the health care sector added 39,000 jobs, with the largest increases occurring in hospitals and in nursing and residential care facilities. In contrast, the federal government continued to experience job losses, shedding 7,000 positions in June and a total of 69,000 since January 2025, reflecting the effects of government cutbacks. The BLS notes that “employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.”

Construction Employment

Employment in the overall construction sector rose by 15,000 in June, following an upwardly revised gain of 6,000 in May. While residential construction gained 5,500 jobs, non-residential construction employment added 9,200 jobs during the month.

Residential construction employment now stands at 3.3 million in June, broken down as 959,000 builders and 2.4 million residential specialty trade contractors. The six-month moving average of job gains for residential construction was -1,833 a month, reflecting the three months of job losses recorded over the past six months, specifically in January, March, and May of 2025. Over the last 12 months, home builders and remodelers experienced a net loss of 1,400 jobs, marking the second annual decline since September 2020. Since the low point following the Great Recession, residential construction has gained 1,360,600 positions.

In June, the unemployment rate for construction workers declined to 3.5% on a seasonally adjusted basis. The unemployment rate for construction workers has remained at a relatively lower level, after reaching 15.3% in April 2020 due to the housing demand impact of the COVID-19 pandemic.

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The count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the May Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).

The number of open jobs for the overall economy increased slightly from 7.40 million in April to 7.77 million in May. This is smaller than the 7.90 million estimate reported a year ago and reflects a softened aggregate labor market. However, the May estimate was a stronger number than expected and runs counter to some other, recent negative reporting of labor market data.

Previous NAHB analysis indicated that this number had to fall below 8 million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below 8 million for national job openings, the Fed, in theory, should be able to cut further despite a recent pause. There is growing pressure on the Fed to do so.

The number of open construction sector jobs was effectively unchanged from a revised 242,000 in April to 245,000 in May. This nonetheless marks a significant reduction of open, unfilled construction jobs than that registered a year ago (375,000) due to a slowing of construction/housing activity. The chart below notes the recent decline for the construction job openings rate, which is now near the lows of 2019.

The construction job openings rate was steady at 2.8% in May, although significantly lower year-over-year from 4.4%.

The layoff rate in construction held at 2% in May. The quits rate increased on a monthly basis to 2.3%, the same as a year ago.

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Nonfarm payroll employment increased in 37 states in May compared to the previous month, while it decreased in 10 states and the District of Columbia. The three remaining states, Alaska, Delaware, and New Jersey reported no change. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 139,000 in May following a gain of 147,000 jobs in April.

On a month-over-month basis, employment data was most favorable in Texas, which added 28,100 jobs. Florida came in second (+20,500), followed by California (+17,700). Meanwhile, a total of 28,400 jobs were lost across 10 states and the District of Columbia, with Ohio reporting the steepest job losses at 6,500. In percentage terms, employment increased the highest in Montana at 0.4%, while Connecticut saw the biggest decline at 0.4% between April and May.

Year-over-year ending in May, 1.7 million jobs have been added to the labor market, which is a 1.1% increase compared to the May 2024 level. The range of job gains spanned from 1,800 jobs in Connecticut to 213,300 jobs in Texas. Three states and the District of Columbia lost a total of 19,700 jobs in the past 12 months, with West Virginia reporting the steepest job losses at 9,400. In percentage terms, the range of job growth spanned 0.1% in Connecticut and Massachusetts to 2.7% in South Carolina. The District of Columbia, Iowa, and West Virginia declined by 0.2%, 0.5%, and 1.3% respectively. Maine was unchanged.

Construction Employment

Across the nation, construction sector jobs data —which includes both residential and non-residential construction—showed that 27 states and the District of Columbia reported an increase in May compared to April, while 21 states lost construction sector jobs. The two remaining states, New Hampshire and Wisconsin, reported no change on a month-over-month basis. Michigan, with the highest increase, added 4,300 construction jobs, while Virginia, on the other end of the spectrum, lost 1,900 jobs. Overall, the construction industry added a net 4,000 jobs in May compared to the previous month. In percentage terms, Montana reported the highest increase at 3.9% and Vermont reported the largest decline at 1.9%.

Year-over-year, construction sector jobs in the U.S. increased by 126,000, which is a 1.5% increase compared to the May 2024 level. Texas added 28,600 jobs, which was the largest gain of any state, while California lost 13,800 construction sector jobs. In percentage terms, New Mexico had the highest annual growth rate in the construction sector at 17.2%. During this period, Washington reported the largest decline of 5.0%.

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The rapid rise of artificial intelligence (AI), particularly machine learning and generative AI (GenAI), is reshaping industries, creating new economic opportunities, and raising critical questions about its long-term impact on jobs and economic growth. 

A recent study by Ping Wang and Tsz-Nga Wong, titled “Artificial Intelligence and Technological Unemployment” (NBER Working Paper No. 33867, May 2025), provides valuable insights into how AI is reshaping labor markets. Their research highlights both the opportunities and challenges AI adoption brings to the workforce as it becomes increasingly integrated into the economy.

The paper conceptualizes AI as a “learning-by-using” technology, meaning that AI improves its capabilities by learning from the very workers it may eventually replace. In the short term, this dynamic can significantly boost labor productivity. However, over time, if wages and job roles are not adjusted to reflect the growing capabilities of AI, the technology may transition from a supportive tool to a direct substitute for human labor.

The paper outlines three possible long-term scenarios:

Some-AI Steady State: AI improves productivity threefold but cuts nearly a quarter of jobs. Half of the job losses occur within the first five years, driven by the rapid replacement of workers by an AI system.

Unbounded-AI Equilibrium: AI adoption unfolds smoothly, enhancing productivity without displacing workers. Employment rises modestly as AI becomes a complement to human labor rather than a substitute.

No AI Equilibrium: AI fails to take off, and the labor market remains largely unchanged from its traditional form.

AI presents a dual-edged sword. While it holds the potential to drive sustained growth and create new kinds of work, it also poses significant risks of job displacement. Early stages of AI adoption see the most significant job losses, while those who keep their jobs often see wage increases due to higher productivity.

The authors emphasize that the long-term impact of AI remains uncertain. Outcomes will depend on several variables, including AI’s learning speed, error rates, and the relative cost of replacing workers with machines. This unpredictability makes it difficult to forecast whether AI will be a net job creator or destroyer over time.

Additionally, the study points out that traditional labor market policies are insufficient to address the complex challenges posed by AI. Instead, smart, targeted policies are needed, like balancing the bargaining power between workers and firms, and offering subsidies to jobs at risk of AI disruption. These steps could mitigate negative outcomes and improve overall welfare significantly over the next 20 years, and help make AI a powerful ally in our work rather than a threat.

The Impact of AI on the Home Building Industry: Opportunities and Challenges

In the home building industry, on the supply side, AI is beginning to make its mark with both significant opportunities and complex challenges.

From automating repetitive tasks to enhancing project efficiency, AI is transforming how homes are designed and built. Technologies, such as AI-powered design tools, robotic bricklayers, and automated construction equipment, are streamlining construction processes. These innovations reduce the need for manual labor in certain areas, leading to lower costs and shorter project timelines and helping address ongoing labor shortages. Moreover, AI is creating new opportunities within the home building sector. Demand is rising for workers skilled in AI system management, data analysis, and digital design, signaling a shift toward more technologically integrated and highly skilled roles.

However, the adoption of AI comes with disruption. Without opportunities for reskilling, many workers whose roles may become automated may face displacement. The shortage of highly skilled workers could drive up labor costs and lead to project delays, putting pressure on housing affordability.

To ensure a smooth transformation, targeted policy support is essential. Public and private investment in workforce retraining and upskilling programs will be key to helping displaced workers adapt to new roles, like ones that involve supervising AI systems or solving complex problems machines can’t yet handle.

On the demand side of the housing market, the impact of AI could potentially be farther-reaching. AI will bring short-term disruption to labor markets, eliminating office jobs in metro areas. Such transitions in labor markets will alter housing demand, until the economy produces new jobs in an AI-adopting economy. And in theory, by making workers more productive, AI will raise long-term wage growth. These income gains will be a positive outcome for remodeling, housing demand, and vacation home demand in long run.

For the time being, these impacts are speculative. Over time, they will be worth watching on both the supply and demand sides of the housing market.

Note:

Schmelzer, Ron. “Building The Future: How AI Is Revolutionizing Construction.”

“The Rise of Artificial Intelligence in Construction.” Construction Today, September 2024.

Demirci, Ozge, Jonas Hannane, and Xinrong Zhu. “Research: How Gen AI Is Already Impacting the Labor Market.” Harvard Business Review, November 11, 2024.

“Artificial Intelligence Impact on Labor Markets.” International Economic Development Council (IEDC) and Economic Development Research Partners (EDRP), Literature Review.

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Despite ongoing economic and policy uncertainty, the labor market remains resilient, though early signs of softening are beginning to emerge. Job growth moderated in May, and employment figures for March and April were notably revised downward. The unemployment rate remained at 4.2%.

In May, wage growth remained unchanged. Year-over-year, wages grew at a 3.9% rate. Wage growth has been outpacing inflation for nearly two years, which typically occurs as productivity increases.

National Employment

According to the Employment Situation Summary reported by the Bureau of Labor Statistics (BLS), total nonfarm payroll employment rose by 139,000 in May, following a downwardly revised increase of 147,000 jobs in April. Since January 2021, the U.S. job market has added jobs for 53 consecutive months, making it the third-longest period of employment expansion on record. Monthly employment growth has averaged 124,000 per month in 2025, compared with the 168,000 monthly average gain for 2024.

The estimates for the previous two months were revised down. The monthly change in total nonfarm payroll employment for March was revised down by 65,000 from +185,000 to +120,000, while the change for April was revised down by 30,000 from +177,000 to +147,000. Combined, the revisions were 95,000 lower than previously reported.

The unemployment rate remained unchanged at 4.2% in May. Despite this stability, the overall labor force shrank with notable shifts. The number of employed persons decreased by 696,000, while the number of unemployed persons increased by 71,000.

Meanwhile, the labor force participation rate—the proportion of the population either looking for a job or already holding a job—decreased two percentage points to 62.4%. The overall labor force participation rate remains below its pre-pandemic levels of 63.3% at the beginning of 2020. Among individuals aged 25 to 54, the participation rate declined two percentage points to 83.4%. The rate for the prime working-age group (25 to 54) has been trending downward since peaking at 83.9% last summer.

In May, industries like health care (+62,000), leisure and hospitality (+48,000), and social assistance (+16,000) continued to see gains. Meanwhile, federal government lost 22,000 jobs in May and has shed 59,000 jobs since January 2025, reflecting the effects of government cutbacks. The BLS notes that “employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.”

Construction Employment

Employment in the overall construction sector rose by 4,000 in May, following a downwardly revised gain of 7,000 in April. While residential construction lost 7,400 jobs, non-residential construction employment added 11,300 jobs during the month.

Residential construction employment now stands at 3.3 million in May, broken down as 963,000 builders and 2.4 million residential specialty trade contractors. The six-month moving average of job gains for residential construction was -2,617 a month, reflecting job losses recorded in three of the past six months, specifically in January, March, and May of 2025. Over the last 12 months, home builders and remodelers experienced a net loss of 1,000 jobs, marking the first annual decline since September 2020. Since the low point following the Great Recession, residential construction has gained 1,360,600 positions.

In May, the unemployment rate for construction workers declined to 3.8% on a seasonally adjusted basis. The unemployment rate for construction workers has remained at a relatively lower level, after reaching 15.3% in April 2020 due to the housing demand impact of the COVID-19 pandemic.

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Wage growth in construction continued to decelerate in April on a national basis, but the differences across regional markets remain stark. Nationally, average hourly earnings (AHE) in construction increased 3.6% year-over-year and crossed the $39.3 mark when averaged across all payroll employees (non-seasonally adjusted, NSA). Meanwhile, average earnings in construction in Alaska and Massachusetts exceeded $50 per hour (NSA). Across states, the annual growth rate in AHE ranged from 10.6% in Nevada to a decline of 3% in Oklahoma. This is according to the latest Current Employment Statistics (CES) report from the Bureau of Labor Statistics (BLS).   

Average hourly earnings (AHE) in construction vary greatly across 43 states that report these data. Alaska, states along the Pacific coast, Illinois, Minnesota, and the majority of states in Northeast record the highest AHE. As of April 2025, fourteen states report average earnings (NSA) exceeding $40 per hour.

At the other end of the spectrum, nine states report NSA average hourly earnings in construction under $34. The states with the lowest AHE are mostly in the South, with Arkansas reporting the lowest rate of $29.3 per hour.

While differences in regional hourly rates reflect variation in the cost of living across states among other things, the faster growing wages are more likely to indicate specific labor markets that are particularly tight. Year-over-year, Nevada, Mississippi, Alaska, Colorado, Texas, Florida, South Carolina, and Montana reported fastest growing hourly wages in construction, more than doubling the national average growth of 3.6%. Nevada reported the largest annual increase of 10.6%, while the growth rate in Mississippi and Alaska was just under 10%.

In sharp contrast, Oklahoma registered a decline in hourly wages of 3%. Five other states reported modestly declining hourly rates in construction, compared to a year ago – Louisiana, Missouri, Rhode Island, California, and Wisconsin.

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The count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the April Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).

The number of open jobs for the overall economy increased slightly from 7.20 million in March to 7.39 million in April. This is notably smaller than the 7.62 million estimate reported a year ago and reflects a softened aggregate labor market. Previous NAHB analysis indicated that this number had to fall below 8 million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below 8 million for national job openings, the Fed, in theory, should be able to cut further despite a recent pause. However, tariff proposals may keep the Fed on pause in the coming quarters.

The number of open construction sector jobs was effectively unchanged from a revised 251,000 in March to 248,000 in April. This nonetheless marks a significant reduction of open, unfilled construction jobs than that registered a year ago (326,000) due to a slowing of construction activity. The chart below notes the recent decline for the construction job openings rate, which is now back to the lows of 2019.

The construction job openings rate was unchanged at 2.9% in April, although significantly lower year-over-year from 3.8%.

The layoff rate in construction ticked higher to 1.9% in April. The quits rate dipped to 1.8% for the month.

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