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
