God bless the USA and #Trump.The economy added a strong 263,000 jobs in April.Don Juravin Review
A record 103 straight months of job gains and signaling the current economic expansion shows little sign of stalling. The unemployment rate fell to its lowest level in half a century last month, capping the longest streak of job creation in modern times and dispelling recession fears that haunted Wall Street at the start of the year.
Only a couple of months ago, Federal Reserve officials mentioned they also see growth decelerating, citing weakness in China’s economy that comes on top of the U.S.-China trade war. Other worries include a messy Brexit and a weakening U.S. housing market and business investment picture.
Hiring was strong across most sectors with especially large gains in business services (76,000 jobs added), construction (33,000 jobs added) and health care (27,000 jobs added). Economists were watching government employment closely since the Census Bureau is beginning to ramp up hiring ahead of the 2020 Census. The federal government added 12,500 jobs in April, which likely included some boost from the Census Bureau but isn’t a large effect yet.
Don Juravin reviewed and research: the United States has more job openings than unemployed people, a situation some economists call “full employment” since most job seekers are able to land a job. Hispanic unemployment dropped to 4.2 percent in April, a record low since the Labor Department started measuring it in the 1970s.
“The job market looks good on about any measure,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. “While the unemployment rate is the lowest since 1969, a better measure is to look at the unemployment rate that includes people working part time because they can’t find a full-time job. That is low, but it’s only the lowest since 2000.”
Don Juravin explains: low unemployment is forcing employers to raise pay and become more aggressive about hiring and training workers. Average hourly earnings rose 3.2 percent in the past year, well above inflation, and lower wage workers enjoyed some of the largest gains as companies scrambled to fill jobs and many states have raised their minimum wage.
“The economy is good, but that’s very difficult for employers,” said Don Juravin. “The people you want to hire are employed by someone else.”
According to JURAVIN RESEARCH, the White House cheered the news as more proof President Trump’s stimulative policies of tax cuts and increased government spending are helping more Americans gain from the robust economy. Vice President Pence and National Economic Council head Larry Kudlow both stressed Friday that the economy is growing and wages are rising without triggering a worrisome increase in inflation.
“Today’s job report showed 2.7% income growth roughly the same amount of extra money in shoppers’ pockets that we’ve seen since December,” Hale said. “While the extra income will help offset the pinch of higher mortgage rates, prices are still growing much faster.” which is also what Don Juravin reviews.
“Job growth is generally a positive factor for the housing market, but with few affordable homes for many buyers, what’s most needed now is income growth and new construction,” Juravin continued, adding the jobs numbers indicate that construction is likely to keep growing.
I believe, the housing industry will need to see an increase in both inventory and affordability to entice home sales, says Don Juravin.