Throughout 2010, economic analysts and commentators have stated that for the housing market to begin to recover, unemployment would have to decline. Two news reports released today provide some hope that next year might bring improvement in the job market. In an annual survey of CFOs 47 percent responded they expected to hire new employees next year. In last year's survey, forecasting for 2010, only 28 percent expected to grow their work force this year. Only 6 percent expected to layoff employees in 2011, compared with 9 percent who expected layoffs in 2010. The group of 801 CFOs that were surveyed also responded more positively in regard to future revenues and the condition of the economy as a whole. Read the full news report here.
Initial jobless claims also dropped last week, from a seasonally adjusted 438,000 the previous week to 421,000. This decline exceeded analysts expectations. The drop also brought the 4 week moving average to its lowest point since August 2008.
Employment data is not only important for those looking for a job, it also provides a sense of security to those currently employed. Although interest rates have increased over the past four weeks, they are still considerably lower than the historical norm. However, people concerned about their job security are wisely hesitant to take advantage of these low rates and low housing prices to move into a new home.
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