KEY MARKET INDICATORS as of Nov 07, 2017
October Jobs Report
The U.S. job market rebounded strongly from the impact of Hurricanes Harvey and Irma in October, adding 261,000 jobs. Over the past two months together, employers added 140,000 jobs per month – below the pace of job growth in the first 8 months. We will likely see some above-trend job growth in the coming months, as the economy fully recovers. Unemployment rate continued to fall in October, reaching 4.1% – the lowest point since December 2000. However, signs of across the board wage inflation remained elusive. Wage growth slowed to 2.4% in October as lower-income workers affected by the Hurricanes returned to the job market and were included in the report.
The reversal of the impact from hurricanes is clearly shown in the industry-level job growth. Tourism (leisure and hospitality) added a seasonally adjusted 106,000 jobs in October, erasing the 102,000 jobs lost last month. Most of these jobs were related to the restaurant industry. Professional and business services, education and health, and manufacturing provided most of the job growth in October. Construction had a disappointing month. It added just 11,000 jobs, which suggests that the recovery from the Hurricanes was still not complete.
The job market continues to be very positive for potential first-time homebuyers. Unemployment rate for people in the primary homebuying age (25-34 and 35-44) was unchanged at 3.8% in October, the lowest point since 2007.
* FHFA Purchase-Only Home Price Index