{"id":998,"date":"2020-08-10T13:11:48","date_gmt":"2020-08-10T13:11:48","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=998"},"modified":"2020-08-10T13:11:48","modified_gmt":"2020-08-10T13:11:48","slug":"latest-unemployment-report-slow-steady-improvement","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/latest-unemployment-report-slow-steady-improvement\/","title":{"rendered":"The Latest Unemployment Report: Slow and Steady Improvement"},"content":{"rendered":"
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The Latest Unemployment Report: Slow and Steady Improvement<\/p><\/div>\n

Last Friday, the\u00a0Bureau of Labor Statistics<\/em>\u00a0(BLS) released its latest\u00a0Employment Situation Summary<\/a>. Going into the release, the\u00a0expert<\/a>\u00a0consensus was for 1.58 million jobs to be added in July, and for the unemployment rate to fall to 10.5%.<\/p>\n

When the official report came out, it revealed that\u00a01.8 million jobs were added<\/strong>, and the\u00a0unemployment rate fell to 10.2%<\/strong>\u00a0(from 11.1% last month). Once again, this is excellent news as this was the third consecutive month the unemployment rate decreased.<\/p>\n

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BLS Unemployment Rate<\/p><\/div>\n

There is, however, still a long way to go before the job market fully recovers. The\u00a0Wall Street Journal\u00a0<\/em>(WSJ) put a potential\u00a0date<\/a>\u00a0on that recovery:<\/p>\n

\u201cJuly\u2019s payroll growth, at 1.8 million, still leaves total payrolls 12.9 million lower than in February. And yet if job gains continued at July\u2019s pace, that deficit will be erased by March 2021. If payrolls reclaim their last peak in 13 months, that would be remarkably fast. It took more than six years after the last recession.\u201d<\/em><\/p><\/blockquote>\n

Permanent vs. Temporary Unemployment<\/strong><\/h4>\n

During a pandemic, it\u2019s important to differentiate those who have lost their jobs on a temporary basis from those who have lost them on a permanent basis.\u00a0Morgan Stanley<\/em>\u00a0economists noted in the same WSJ article:<\/p>\n

\u201cThe rate of churn in the labor market remains incredibly high, but a notable positive detail in this month\u2019s report was the\u00a0downtick in the rate of new permanent layoffs<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

To address this, the\u00a0core<\/a>\u00a0unemployment rate becomes increasingly important. It identifies the number of people who have permanently lost their jobs. This measure subtracts temporary layoffs and adds unemployed who did not search for a job recently. Jed Kolko,\u00a0Chief Economist\u00a0<\/em>at\u00a0Indeed<\/em>\u00a0and the founder of the index\u00a0reported<\/a>:<\/p>\n

\u201cCore unemployment fell in July for the first time in the pandemic. That\u2019s the good news I was hoping for.\u201d<\/em><\/p><\/blockquote>\n

What about the housing market?<\/strong><\/h4>\n

The housing market has continued to show tremendous resilience during the pandemic. Commenting on the labor report, Robert Dietz,\u00a0Chief Economist<\/em>\u00a0for the\u00a0National Association of Home Builders\u00a0<\/em>(NAHB),\u00a0tweeted<\/a>:<\/p>\n

\u201cHousing continues to rebound in another positive labor market report. Home builder and remodeler job gains of 24K for July. Residential construction employment down just 56.4K compared to a year ago. Total residential construction employment at 2.85 million.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

We should remain cautious in our optimism, as the recovery is ultimately tied to our future success in mitigating the ongoing health crisis. However, as Mike Fratantoni,\u00a0Chief Economist<\/em>\u00a0for the\u00a0Mortgage Bankers Association,<\/em>\u00a0reminds us<\/a>:\u00a0\u201cThe pace of job growth slowed in July, but the gains over the past three months represent an impressive rebound during the ongoing economic challenges brought forth by the pandemic.\u201d<\/em><\/p>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Economic Recovery Finish Reading The Latest Unemployment Report: Slow and Steady Improvement<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,167,182,10,18,16,27,9,49,42,40,63,20,12,24,48,54,47,19,154,204,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/998"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=998"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/998\/revisions"}],"predecessor-version":[{"id":1001,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/998\/revisions\/1001"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}