Archive for the 'Jobs' Category
June’s Jobs Report Wasn’t As Bad As The Headlines (And How You Can Take Advantage)
July 12th, 2010 categories: Jobs
In June, for the first time since December 2009, the U.S. workforce shrank.
According to the Bureau of Labor Statistics, the economy shed 125,000 jobs last month even as the Unemployment Rate dropped to 9.5 percent. The drop in the Unemployment Rate is being attributed to fewer Americans looking for work.
At first glance, the jobs report looks weak but a deeper look shows something different.
Excluding the 225,000 government Census workers that recently left the workforce, the total number of employed persons actually grew by 83,000 in June. That’s 50,000 more working Americans as compared to May.
And, since the start of the year, the U.S. workforce has grown by 857,000.
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May 2010 Jobs Report Gives A Temporary Boost To Home Affordability
June 4th, 2010 categories: General, Jobs
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls data from the month prior.
The release is more commonly called “the jobs report” — a major factor in mortgage rates and monthly payments.
Especially now.
With the recession officially over and growth returning to the U.S. economy, the recovery’s next frontier is jobs. As job growth increases, home affordability should take a hit. Here’s why:
- As the number of working Americans increases, so should total consumer spending
- As consumer spending increases, so should a return to risk-taking on Wall Street
- As risk-taking returns to Wall Street, bond markets should start to lose
Mortgage rates, therefore, should rise.
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Tying Friday’s Jobs Report To Rising Mortgage Rates
March 4th, 2010 categories: Jobs, Mortgage Rates, Statistics
Conforming and FHA mortgage rates in Tennessee have improved over the last 10 days, but that could all change this Friday with the release of February’s Non-Farm Payrolls report.
Non-Farm Payrolls is the official name of the government’s monthly jobs report and, given the fragile state of the U.S. economy, Wall Street will be watching it closely.
Mortgage rates could spike come Friday morning.
Jobs are an important part of the nation’s recovery. Among other concerns, unemployed Americans don’t spend as much money on goods and services, and are more likely to default on a mortgage. This retards economic growth and increases the potential for foreclosures.
When jobs numbers worsen, therefore, it follows that economic projections worsen, too.
Poor employment figures draw money away from the stock markets and into less-risky bond markets, including mortgage-backed bonds. Mortgage rates improve as a result. Conversely, when jobs numbers improve, stock markets gain and bond markets worsen.
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