Released June 5, 2009
Eagles,
The monthly unemployment report was just released. It was expected that we would shed an additional 525,000 jobs in May, but to everyone's surprise, we only dropped by 345,000 jobs. This is a number that is further showing recovery in our market. Now for the overall unemployment rate, anticipation was for a 9.2% unemployment rate, but the number came in at 9.4%. Last month our unemployment rate was 8.9%
One thought about the higher unemployment rate is the idea that, as our economy is in recovery, more people are returning to the work force and are looking for a job. But as always, I bet the news media tonight will focus on the overall number, as it is a negative number.
Our unemployment rate is now the highest its been since 1983. It was 1985 when I entered the real estate business, and the market was VERY strong then. We are seeing an improving market and this will continue.
On the release of the unemployment data, Federal Reserve President Lockhart announced that the Fed should be diligent in moving to increase interest rates. This move would help to keep our economy from overheating and having runaway inflation. The 10 year bond, which is the gauge for our mortgage interest rates did jump to a 6 month high, and the stock market is expected to jump HIGHER at its opening this morning. Pre-market numbers are showing a 100 point jump at the open, and we are getting ever-closer to a DOW 9,000! The DOW bottomed about 3 months ago at 6,547. We are nearing a 2,500 point gain now in the DOW. This is a HUGE percentage move UP.
All in all, the market is seeing our employment numbers - even though on the surface they look negative, as a POSITIVE.
Please let me know if you have any questions or comments.
Thanks,
Chuck
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