Job Openings Rise to Highest Level in 16 Months June 9, 2010
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Job openings jumped in April to the highest level in 16 months, a sign that private employers might boost hiring in coming months.
The number of jobs advertised at the end of April rose to 3.1 million from 2.8 million in March, the Labor Department said Tuesday, the most openings since December 2008.
Private employers accounted for the entire net gain. The government’s advertising for jobs decreased, despite the hiring of hundreds of thousands of census workers in May.
The department’s report, known as the Job Openings and Labor Turnover survey, follows an employment report last week that found private employers added only 41,000 jobs in May. Temporary census hiring accounted for 411,000 jobs. The unemployment rate fell to 9.7 percent from 9.9 percent in April.
The outlook also was strong in Austin, according to the Manpower Employment Outlook Survey. Sixteen percent of the Central Texas companies surveyed by staffing company Manpower Inc. said they plan to add jobs in the third quarter, and only 7 percent expect to cut jobs.
The difference of 9 percentage points between the proportions of local companies looking to add and shed workers compares with a difference of 3 percentage points in the July-to-September period last year, when nearly as many companies planned to cut jobs as to add them.
The rise in job openings “makes you a little more upbeat about the labor market,” said Michael Feroli, chief U.S. economist at JP-Morgan Chase.
Read more at http://www.statesman.com/business/job-openings-rise-to-highest-level-in-16-735386.html.
Pending Home Sales Surge Continues June 7, 2010
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Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator, rose 6.0% to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4% higher than April 2009 when it was 90.6. That follows gains of 7.1% in March and 8.3% in February.
Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said this second round of surging sales from the tax credit extension looks as strong as the original tax credit. “There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales,” he said. “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs.” NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.
“The home buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity; in turn, that is keeping additional households from going underwater and risking foreclosure,” Yun said.
The PHSI in the Northeast jumped 29.5% to 97.9 in April and is 24.5% above a year ago. In the Midwest the index rose 4.1% to 104.2 and is 17.9% above April 2009. Pending home sales in the South slipped 0.6% to an index of 123.9, but is 31.3% higher than a year ago. In the West the index rose 7.5% to 107.9 and is 12.0% higher than April 2009.
“A big concern surfacing recently is insufficient time to close the deal at the settlement table. Under normal circumstances, two months would be enough time from contract signing to settlement date,” Yun said. “However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues. There could be a sizable number of home buyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30.” Because of these market challenges, NAR has asked Congress to provide flexibility on the deadline for closing.
Read more at http://rismedia.com/2010-06-06/pending-home-sales-surge-continues/.
Private Employment Grows Slowly; Weekly Claims Drop June 3, 2010
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The number of U.S. workers filing new claims for jobless benefits fell last week, while private employers added jobs in May, further evidence the labor market was improving.
The data on Thursday came ahead of the government’s closely watched employment report on Friday, which is expected to show non-farm payrolls increased 513,000 in May, buoyed by hiring for the decennial census, after a 290,000 increase in April.
That would mark five straight months of job gains.
Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 453,000, the Labor Department said. That was a touch above market expectations for 450,000.
Separately, private employers added 55,000 jobs in May after increasing payrolls by 65,000 the prior month, an ADP Employer Services report showed. Though the ADP report was weaker than forecast, analysts said it offered evidence the labor market was getting better.
Read more at CNBC.
First-Time Home Buyers and Boomers Feel Effects of Housing Downturn Most June 1, 2010
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Although the situation is open to interpretation as well as change, there are growing concerns that the effects of this economic downturn could have a long-lasting effect on the housing market.
A study by the Mortgage Bankers Association, conducted by Kentucky economics professor Joe Peek, concludes that “the current financial crisis and recession exceeded the devastation created by other post-World War II recessions.”
Saving rates have risen substantially. Many Americans will continue to cut spending sharply out of necessity, “others out of fear of what the future holds,” Peek said.
When it comes to housing, he said, it was unlikely that the dramatic rise in loan delinquencies, foreclosures and bankruptcies would show a “meaningful” decrease in the foreseeable future.
“High unemployment and low house prices are widely projected to remain for an extended period, as well as the rise in problem loans at banks that will restrain their willingness and ability to provide credit,” Peek said.
Two groups expected to feel the pinch the most are young first-time buyers and the so-called active-adult purchasers who downsize as their children grow and move out.
Read more at Rismedia
Consumer Confidence Lifts in May May 27, 2010
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A key market indicator released Tuesday suggests Americans are feeling better about job prospects and getting ready to spend. Consumer confidence increased for the third-straight month in May, according to a Conference Board survey.
The group’s Consumer Confidence Index ticked up 5.6 points to 63.3 this month, despite national unemployment rising to 9.9 percent in April. Central Texas added 2,800 jobs last month as the jobless rate dropped to 7 percent from 7.1 percent.
“Consumer confidence posted its third consecutive monthly gain, and although still weak by historical levels, appears to be gaining some traction,” said Lynn Franco, director of the New York nonprofit’s Consumer Research Center.
Consumer spending accounts for 70 percent of the nation’s gross domestic product, making confidence important to the economy as whole. A healthy economy typically requires an index of at least 90.
The Present Situation Index, which measures current concerns about the business and labor markets, rose to 30.2, from 28.2 last month. The Expectations Index, indicating concerns about future conditions, rose to 85.3, from 77.4 last month.
“Consumers’ apprehension about current business conditions and the job market continues to slowly dissipate,” Franco said. “Consumers’ expectations, on the other hand, have increased sharply over the past three months, propelling the Expectations Index to pre-recession levels (August 2007, 89.2). The improvement has been fueled primarily by growing optimism about business and labor market conditions. Income expectations, however, remain downbeat.”
The Conference Board bases its index on a survey of 5,000 U.S. households.
Source: Austin Business Journal
Austin Ranks High on ‘Quality of Life’ May 25, 2010
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In Austin, it’s good to be young.
Locals are apparently living the ninth best quality of life in the U.S, according to a new study by Portfolio.com/bizjournals that cited the city’s youth as a major contributing factor. (Click here to open an interactive chart with all of the data used in the study). Austin’s strong population growth, 32 percent since 2000, also helped in overall ranking, as well as a comparatively high percent walking to work, 7.1 percent.
The study compared the performances of America’s 67 biggest metropolitan areas in 20 statistical categories. The highest scores went to well-rounded markets with healthy economies, moderate costs of living, impressive housing stocks and high-powered educational systems. Austin scored in many indicators, except people living in the same place for the more than year.
Austin ranked highest on the study’s job opportunities for young adults indicator, while Houston took No. 5, Dallas took the No. 7 and San Antonio was No. 14 on that listing. Dallas was ranked No. 29 overall for quality of life, followed by Houston at No. 47 and San Antonio at No. 53.
Bakersfield ranks last in six of the study’s 20 categories. It has the highest poverty rate of any major market, as well as the lightest concentration of management and professional jobs, weakest inventory of big houses, and smallest percentages in the three educational categories that track adults with high school diplomas, bachelor’s degrees and advanced degrees.
Also in the bottom five are New Orleans, Memphis and Riverside-San Bernardino, Calif.
Source: Austin Business Journal
Austin No. 3 Dog-Friendly City May 18, 2010
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Austin was ranked the 3rd most dog-friendly city, according to a DogFriendly.com listing of cities with pet-accommodating transportation, parks, attractions, stores and dining.
From Freddie’s Place to the endless number of courtyard coffee shops and cafes, Austin was listed for its overwhelming number of dog-friendly eateries. The dog lover’s blog and information site also recognized dog-friendly Zilker Botanical Gardens and 12 off-leash dog parks.
San Diego took the No. 1 spot, followed by Portland, Ore. Austin was the only Texas city on the top 10 list, though San Antonio was given an honorary mention.
Central Texas is home to many dog-supported businesses, including DogBoy’s Dog Ranch, recently-launched gourmet pet food maker Nulo Inc. and Shoo tag maker Energetic Solutions LLC.
Source: http://austin.bizjournals.com/austin/stories/2010/05/17/daily7.html
Austin Home Inventory Rises, Prices Fall May 12, 2010
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Austin reported the highest increase in residential real estate inventory between March and April, 8.6 percent, when compared with 26 U.S. metros, according to ZipRealty Inc. (Nasdaq: ZIPR).
A total 10,124 homes were for sale in Austin as of April 30 this year, compared to 10,076 listed a month before. The city reported a 4.7 decrease, however, from the same month last year when 8,881 houses were for sale. Homes reduced prices an average 1.81 percent.
The average inventory change across all cities included in the report was 2.59 percent increase between March and April and and negative 9.61 percent year-over-year.
The percent of homes for sale that reduced prices also increased from March to April, rising to 42.1 percent lowering price tags to 38.6 percent in March. About 42.6 percent of homes for sale lowered prices in April 2009.
Source: http://austin.bizjournals.com/austin/stories/2010/05/10/daily18.html?surround=lfn
Fannie Mae: Long-Term Financial Sustainability Uncertain May 10, 2010
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Fannie Mae has again asked taxpayers for more money after reporting a first-quarter loss of more than $13 billion, adding that it also expects the level of multifamily defaults and serious delinquencies to increase further during 2010.
The company also said that there is uncertainty regarding future of business after conservatorship terminated and expect this uncertainty to continue.
The mortgage finance company, which was rescued by the government in September 2008, said it needs an additional $8.4 billion from the government to help cover mounting losses.
Fannie Mae [FNM 1.12 0.09 (+8.74%) ] says it lost $13.1 billion, or $2.29 per share, in the January-March period. That takes into account $1.5 billion in dividends paid to the Treasury Department. It compares with a loss of $23.2 billion, or $4.09 a share, in the year-ago period.
The rescue of Fannie Mae and sister company Freddie Mac [FRE 1.36 0.07 (+5.43%) ] is turning out to be one of the most expensive after effects of the financial meltdown. The new request for aid will bring Fannie Mae’s total to $83.6 billion. The total bill for the duo will now be nearly $145 billion.
Late last year, the Obama administration pledged to cover unlimited losses through 2012 for Freddie and Fannie, lifting an earlier cap of $400 billion.
Fannie and Freddie play a vital role in the mortgage market by purchasing mortgages from lenders and selling them to investors. Together the pair own or guarantee almost 31 million home loans worth about $5.5 trillion. That’s about half of all mortgages.
The two companies, however, loosened their lending standards for borrowers during the real estate boom and are reeling from the consequences.
With the housing market still on shaky ground, Obama administration officials say it is still too early to draft any proposals to reform the two companies or the broader housing finance system.
But Republicans argue the sweeping financial overhaul currently before Congress is incomplete without a plan for Fannie and Freddie. They propose transforming Fannie and Freddie into private companies with no government subsidies, or shutting them down completely.
The legislation “touches nearly every corner of the economy,” Alabama Sen. Richard Shelby said in the GOP weekly radio and Internet address over the weekend. “But these major contributors to the crisis are left unscathed,” he added, singling out Fannie Mae and Freddie Mac.
Source: CNBC
US Payrolls Jump by 290,000 But Jobless Rate Hits 9.9% May 7, 2010
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US employment grew at the fastest pace in four years in April as private sector businesses ramped up hiring, showing the labor market recovery picking up steam.
Employers added 290,000 jobs in April, the Labor Department said on Friday, far more than analysts had expected. The department also revised figures for February and March to show 121,000 more jobs were added than previously thought.
The unemployment rate, however, rose to 9.9 percent as discouraged workers re-entered the labor force to look for work.
Stubbornly high unemployment has been a political sore spot for President Barack Obama and his fellow Democrats, even though the job market is showing increased vigor.
Analysts polled by Reuters had expected nonfarm payrolls to rise 200,000 last month and the jobless rate to remain unchanged at 9.7 percent.
The median forecast from the 20 most accurate forecasters was for a payrolls increase of 188,000.
“I think we are moving into this very reassuring range of strong employment growth. It is consistent with the way the economy is going,” said Kurt Karl, chief U.S. economist at Swiss Re in New York.
U.S. stock index futures held gains after the report, while Treasury debt prices extended losses. The U.S. dollar trimmed losses versus the the euro and rose against the yen.
Private sector employment increased 231,000, also the largest gain since March 2006, after rising 174,000 in March. Private payrolls have now grown for four months. Census hiring contributed 66,000 jobs.
Analysts had expected private employment to rise between 50,000 and 100,000 in April.
Data ranging from manufacturing to consumer spending have pointed to a pick-up in the recovery from the U.S. economy’s longest and deepest downturn since the Great Depression.
“The trend is improving,” said Zach Pandl, an economist at Nomura Securities International in New York. “The economic recovery is gaining momentum.”
But public disenchantment over the economy, especially the labor market, is damaging Obama’s popularity. His fellow Democrats face a tough fight in congressional elections in November, with their majority status at stake.
Republicans say Obama’s policies—including a record economic stimulus package—have failed to deliver on their promise of reducing the jobless rate, which is expected to still be painfully high when elections rolls around.
About 8.2 million jobs were lost during the recession and economists warn it is likely to take years to regain that lost employment.
U.S. consumers have begun to participate in what has been a manufacturing-led recovery, but job growth is crucial to sustaining that trend.
Last month, manufacturing payrolls increased 44,000 after rising 19,000 in March. Construction employment gained 14,000, rising for a second month and defying expectations of a fall.
Payrolls in the service sector increased 166,000, advancing for a third month. Temporary help hiring increased 26,200, strengthening the jobs recovery theme. Temporary employment is seen as a precursor to full-time jobs.
Government payrolls rose 59,000, adding onto the prior month’s 56,000 increase. The average workweek rose to 34.1 hours from 34 hours in March.
Source: CNBC
