According to a recent DSnews report, the U.S. economy added almost 5 million jobs in June! With these new jobs, according to the Bureau of Labor and Statistics the unemployment rate has fallen to 11.1%. The BLS revealed that the total number of unemployed Americans fell by 3.2 million to 17.88 million. Unemployment rates decline in June for adult men (10.2%); adult women (11.2%); teenagers (23.2%); African Americans (15.4%); and Hispanics (14.5%). The number of unemployed who were temporarily laid off fell by 4.8 million in June. The labor force participation rose by .7 points in June to 61.5%. This is 1.9 points below pre-pandemic levels.
WHAT ARE EXPERTS SAYING?
The First American’s Deputy Chief Economist, Odeta Kushi, stated the labor market’s improvements will likely slow down if the COVID-19 pandemic is not contained soon. Additionally, she noted that housing has been one of the few sectors of the market to experience a recovery, however, she stated the recovery is dependent on the health of the labor market. Kushi stated, “The wages data for the last couple of months has reflected the underlying shifts in hiring for low-wage workers. The case for housing recovery is that, even if wage growth and thereby household income moderates or falls slightly, historically low mortgage rates would continue to boost house-buying power”. The report also stated that the slow reopening efforts are getting people back to work and the market is moving in the right direction. In addition, if the market continues going in this direction, consumers will gain confidence in making large purchases, such as homes. Realtor.com’s Chief Economist Danielle Hale stated, “So far, the housing market has been resilient, as homebuyers are looking through what may be a short-term disruption and taking advantage of lower rates to buy homes, but the potential for long-lasting recovery may be needed for housing to hold its momentum into the fall”.
Click here to read the full DSnews report to learn more!
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