While unemployment levels will continue to be a major concern and a drag on our economy, several reports showed some improvement last week. This is the single biggest factor in housing. Regardless of interest rates - people simply don't purchase homes when they are unemployed or are concerned about their employment picture. This is why the following data is welcome news for the housing industry.
The headline unemployment rate remained unchanged at 9.1%, however economists are focusing on the improvement in the non-farm payroll data.
Non-farm Payrolls jumped up to 103K in September, from the revised previous month's result of 57K, the U.S. Department of Labor reported. The results considerably exceeded forecasts of 73K growth. The change in total non-farm Payroll employment for July was also revised upward from 85K to 127K.
Average Hourly Earnings increased to 0.2% in September, following a 0.2% drop in August. On an annual basis Average Hourly Earnings remained flat at 1.9% for the second consecutive month in September.
Average Weekly Hours increased to 34.3 in September from 34.2 in August, despite forecasts of remaining at the same level.
In a separate report, the ADP Private Payroll data which measures U.S. non-farm private business sector hirings increased by 91K in September, after rising 89K in August. This was higher than market forecasts of only a 75K increase.
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