Tag Archives: Unemployment

In a conversation Thursday hosted by the Brookings Institution, outgoing Federal Reserve Chairman Ben Bernanke defended the Fed's easy money policies, dismissing concerns of out of control inflation and capital losses. He also eased worries about the long-term effects of the financial crisis--including the impact of unemployment on labor supply and productivity--saying that while they are a problem, none of issues are "truly permanent."

December's discouraging jobs report caused mortgage rates to pull back once again last week.

The Bureau of Labor Statistics (BLS) released Friday its Employment Situation Report, revealing job growth well below consensus forecasts. According to the government report, the U.S. economy added 74,000 jobs last month. Meanwhile, the unemployment rate dropped 0.3 percentage points to 6.7 percent, reflecting a precipitous drop in the labor force. BLS' report shows the labor force participation rate falling 0.2 percentage points to 62.8 percent.

Global economic growth will increase from 2.5 percent this year to 3.3 percent in the new year, with the U.S. economy growing 2.6 percent, up from 1.7 percent this year, according to IHS Chief Economist Nariman Behravesh and IHS Chief U.S. Economist Doug Handler. Europe's recovery "will proceed, but at a very sluggish pace," with growth reaching 0.8 percent, up from -0.4 percent this year. Meanwhile, the dollar will gain strength as the Fed tapers its stimulus while other central banks continue theirs, according to IHS.

The national unemployment rate sank from 7.3 percent to 7.0 percent in November, with 203,000 new jobs added to employer payrolls, the U.S. Department of Labor reported Friday.

Despite the partial government shutdown threatening growth, the nation's economy added 204,000 jobs in October, with prior months seeing major upward revisions, the Bureau of Labor Statistics (BLS) revealed Friday in its Employment Situation Report. Economists surveyed by Bloomberg put out a median forecast of 120,000 new nonfarm payroll jobs.

Asking prices rose 12.5 percent year-over-year in October blue metros and 11.1 percent in red metros, according to the Trulia Price Monitor.

Analysts holding out for a sign that the Federal Reserve may soon taper its asset purchasing program will have to continue waiting. The Fed released on Wednesday the latest Federal Open Market Committee (FOMC) statement, revealing a generally cautious attitude as the economy struggles against headwinds. On the subject of housing, the FOMC noted growth has slowed in recent months; however, unlike the September statement, October's release does not cite rising mortgage rates as a concern.

Freddie Mac released Thursday its Primary Mortgage Market Survey, which shows the 30-year fixed-rate mortgage (FRM) falling to an average rate of 4.13 percent (0.8 point) for the week ending October 24, down from 4.28 percent and the lowest level in about four months. "Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year," explained Frank Nothaft, VP and chief economist for Freddie Mac.

Depressed construction activity is expected to continue weighing down both housing and the larger economy, Freddie Mac predicts in its latest Economic and Housing Outlook.