Top industry economists say the latest jobs report paints a solid picture of the labor market — but some “cracks” in the economy are emerging, which could make potential buyers and sellers more cautious.
But if interest rates continue to drop, “home sales will likely rise,” said Lawrence Yun, chief economist for the National Association of Realtors. “The influence of lower rates generally outweighs job losses.”
The ideal situation, he said, would be one where employers add jobs while mortgage rates are decreasing — but “that scenario is more complex.”
What today’s job report said: The U.S. added 151,000 jobs in February, a bit shy of the 160,000 expected. The unemployment rate, meanwhile, came in at 4.1% instead of the 4% that had been forecast. Meanwhile, employers cut 172,000 jobs — the most since July 2020, when Covid-era cuts reached nearly 263,000.
“Temporary employment declined along with jobs in leisure and hospitality,” Yun said. “In other words, discretionary sectors, as opposed to necessity sectors, are facing challenges.”
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Author: Stephanie Reid-Simons
