On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report from the month prior. This month, though, because the first Friday of the month was also the first day of the month, the report was delayed one week.
The report hit the wires at 8:30 AM ET this morning.
More commonly called “the jobs report”, the government’s non-farm payrolls data influences stock and bond markets, and, in the process, swings a big stick with home affordability figures in Philadelphia and nationwide.
Especially in today’s economic climate.
Although the recession has been deemed over, Wall Street remains unconvinced. Data fails to show the economy moving strongly in one direction or the other and, absent job creation, economists believe growth to be illusionary.
Consider:
- With job creation comes more income, and more spending.
- With more spending comes growth in business
- With growth in business comes more job creation
And the cycle continues.
The prevailing thought is that, without jobs, consumer spending can’t sustain and consumer spending accounts for two-thirds of the economy. No job growth, no economy recovery.
But there’s another angle to the jobs report, too; one that connects to the housing market. As the jobs market recovers, today’s renters are more likely to become tomorrow’s homeowners, and today’s homeowners are more likely to “move-up” to bigger homes. This means more competition for homes at all price points and, therefore, higher home values.
And that brings us to today’s jobs data.
According to the government, 95,000 jobs were lost in September. Economists expected a net loss of 5,000. However, if public sector jobs are excluded from the final figures, jobs grew by 64,000. This is a positive for the private-sector, but still trailed expectations.
Wall Street is voting with its dollars right now and mortgage bonds are gaining, improving mortgage pricing.
So, although the September 2010 jobs report doesn’t reflect well on the economy overall, home affordability in New Jersey and around the country should improve as a result.
