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An Improvement in Jobs!

November 28th, 2009 categories: For Buyers, For Sellers, National real estate news

Associated PressJobless Claims Drop to 14 Month Low

This is better news about the U.S. jobs market than we’ve seen in a while, but it must be taken into seasonal context. In other words, economy and housing industry recovery is still going to take time.

As we have discussed frequently, job loss is directly related to home foreclosures. Both unemployment and foreclosures must decline significantly before we see real stability, first, and then subsequent growth in the U.S. housing market.

Here’s a few key bullet points in the Associated Press article:

  • In an encouraging sign for the U.S. economy, the number of newly laid-off workers filing claims for unemployment benefits fell below 500,000 last week (for the first time since January).
     
  • Consumer spending also picked up in October, and new-home sales hit the highest point in more than a year.
  • Combined, the news suggested that the economy should be able to sustain at least a modest rebound.
  • Analysts noted that jobless claims would have to drop to near 400,000 for several weeks to signal actual growth in employment.
  • Economists estimate the economy will lose a net 145,000 jobs this month. It would have to add 125,000 jobs a month just to keep the unemployment rate from rising.
  • Other analysts also cautioned against reading too much into the sharp drop in unemployment claims. Part of the improvement reflected large seasonal adjustment factors, which smooth out changes that normally occur at certain times of the year.

(full article

here

)

 

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This entry was posted on Saturday, November 28th, 2009 at 12:00 pm and is filed under For Buyers, For Sellers, National real estate news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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