Employment Situation in May: State-Level Analysis

2022-06-22T09:17:26-05:00

Nonfarm payroll employment increased in 32 states and the District of Columbia in May compared to the previous month while 18 states lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 390,000 in May, following a gain of 436,000 jobs in April. On a month-over-month basis, employment data was strong in Texas, which added 74,200 jobs, followed by California (+42,900) and New York (+26,800). Eighteen states lost a total of 52,600 jobs.  In percentage terms, employment in West Virginia increased by 1.3% while Alaska reported a 1.4% decline between April and May. Year-over-year ending in May, 6.5 million jobs have been recovered, marking the economic rebound from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 869,300 jobs in California to 5,400 jobs added in Wyoming. In percentage terms, Nevada reported the highest increase by 7.1%, while Kansas increased by 1.3% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 22 states reported an increase in May compared to April, while 23 lost construction sector jobs. Arizona, Idaho, and South Dakota reported no change. Texas added 10,600 construction jobs while New York lost 5,100 jobs. Overall, the construction industry added a net 36,000 jobs in May compared to the previous month. In percentage terms, Minnesota increased by 3.2% while Wyoming reported a decline of 3.0% between April and May. Year-over-year, construction sector jobs in the U.S. increased by 283,000, which is a 3.8% increase compared to the May 2021 level. Texas added 54,600 jobs, which was the largest gain of any state, while Kentucky lost 2,300 construction sector jobs. In percentage terms, New Mexico had the highest annual growth rate in the construction sector by 12.8%. Over this period, Arkansas reported a decline of 3.6%. Related ‹ Existing Home Sales Slow Again While Prices SurgeTags: construction labor, economics, state and local markets, state employment

Employment Situation in May: State-Level Analysis2022-06-22T09:17:26-05:00

Inflation Hits a Fresh 40-Year High in May

2022-06-10T10:18:59-05:00

Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981. Both energy and shelter index recorded their largest annual gains since September 2005 and February 1991. This persistent inflation is likely to push the Federal Reserve to continue tightening monetary policy and raise rates at an accelerated pace. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 1.0% in May on a seasonally adjusted basis, following an increase of 0.3% in March. Excluding the volatile food and energy components, the “core” CPI increased by 0.6% in May, the same increase as in April. In May, the indexes for gasoline, shelter, and food were the largest contributors to the increase in the headline CPI. After declining 2.7% in April, the energy index rose by 3.9% in May with the gasoline and natural gas index rising 4.1% and 8.0%, the largest monthly increase in natural gas index since October 2005. Meanwhile, the food index rose by 1.2% as the food at home index rose 1.4 percent. Other major component indexes also continued to rise in May. The indexes for shelter (+0.6%), airline fares (+12.6%), used cars and trucks (1.8%) and new vehicles (1.0%) showed sizeable monthly increases in May. The increase in shelter index was the largest monthly increase since March 2004. The index for shelter, which makes up more than 40% of the “core” CPI, rose by 0.6% in May. The indexes for owners’ equivalent rent (OER) and rent of primary residence (RPR) both increased by 0.6% over the month. Monthly increases in OER have averaged 0.5% over the last three months. More cost increases are coming from this category, which will add to inflationary forces in the months ahead. During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 8.6% in May, following an 8.3% increase in April. The “core” CPI increased by 6.0% over the past twelve months, following a 6.2% increase in April. The food index rose by 10.1%, the first increase of 10 percent or more since March 1981, and the energy index climbed by 34.6% over the past twelve months. NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). The Real Rent Index remained unchanged in May. Over the first five months of 2022, the monthly change of the Real Rent Index stayed virtually unchanged, on average. Related ‹ The Aging Housing StockTags: cpi, inflation

Inflation Hits a Fresh 40-Year High in May2022-06-10T10:18:59-05:00

U.S. Added 390,000 jobs in May

2022-06-03T10:20:03-05:00

In May, total nonfarm payroll employment increased by 390,000 and the unemployment rate was unchanged at 3.6%. Solid job gains continued in May, despite surging inflation, persistent supply-chain issues, and fears of a possible recession. Construction industry employment (both residential and non-residential) totaled 7.7 million and has exceeded its February 2020 level. Residential construction gained 16,700 jobs, and non-residential construction added 19,400 jobs in May. Residential construction employment currently exceeds its level in February 2020, while 78% of non-residential construction jobs lost in March and April have now been recovered. Total nonfarm payroll employment increased by 390,000 in May, following a gain of 436,000 in April, as reported in the Employment Situation Summary. The March estimate was revised down by 30,000 from +428,000 to +398,000, while the April increase was revised up by 8,000 to +436,000. With these revisions, employment in March and April together were revised down by 22,000 from the previously reported ones. In the first five months of 2022, more than 2.4 million jobs were created, and monthly employment growth averaged 488,000 per month. As of May 2022, total nonfarm employment is 822,000 lower than its pre-pandemic level in February 2020, almost fully recovered from the COVID-19 pandemic. Meanwhile, the unemployment rate was unchanged, at 3.6% in May. It was 11.1 percentage points lower than its recent high of 14.7% in April 2020 and 0.1 percentage point higher than the rate in February 2020. The labor force participation rate, the proportion of the population either looking for a job or already with a job, increased 0.1 percentage points to 62.3% in May. The number of persons unemployed was little changed, while the number of persons employed increased by 321,000. The labor force participation rate for people who aged between 25 and 54 increased to 82.6% in May. Additionally, according to the Household Survey supplemental data, which come from questions added to the Current Population Survey (CPS) since May 2020, 7.4% of employed persons teleworked or worked at home in the last 4 weeks specifically because of the coronavirus pandemic in May, down from 7.7% in the previous month. The share of the employed who teleworked has declined for the past four months. Two years ago, in May 2020, 35.4% of employed persons teleworked because of the coronavirus pandemic. In May, employment in leisure and hospitality, professional and business services, and transportation and warehousing increased, while employment in retail trade declined by 61,000 over the month, mainly reflecting losses in general merchandise stores (-33,000), clothing and clothing accessories stores (-9,000), food and beverage stores (-8,000), and building material and garden supply stores (-7,000). Employment in the overall construction sector increased by 36,000 in May, following no change in April. Residential construction added 16,700 jobs, and non-residential construction employment rose by 19,400 in May. Residential construction employment now stands at 3.2 million in April, broken down as 903,000 builders and 2.3 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 12,583 a month. Over the last 12 months, home builders and remodelers added 128,000 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,175,000 positions. In May, the unemployment rate for construction workers rose by 0.2 percentage points to 4.1% on a seasonally adjusted basis. The unemployment rate for construction workers has been trending lower, after reaching 14.2% in April 2020, due to the housing demand impact of the COVID-19 pandemic. Related ‹ Apartment Absorption Increased while Completions FellTags: employment, labor force, labor force participation rate, residential construction employment

U.S. Added 390,000 jobs in May2022-06-03T10:20:03-05:00

Home Prices Surged in March

2022-05-31T12:37:56-05:00

By Jing Fu on May 31, 2022 • National home prices grew at an unsustainable pace in March, reaching an all-time high. This indicates that the imbalanced market with strong demand and record-low inventory continued to put upward pressures on home prices. However, keep in mind this is a backward-looking reading. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 28.2% in March 2022, following a 27.4% increase in February. National home prices are now 60.7% higher than their last peak during the housing boom in March 2006. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 20.6% annual gain in March, after a 20.0% increase in February. The year-over-year home price appreciation slowed a little during the last quarter of 2021, and accelerated in the first three months of 2022, before the spring home-buying season from April to June. Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), increased at a seasonally adjusted annual rate of 19.0% in March, following a 25.0% increase in February. On a year-over-year basis, the FHFA Home Price NSA Index rose by 19.0% in March, following a 19.4% increase in February. In addition to tracking national home price changes, S&P CoreLogic reported home price indexes across 20 metro areas in March. All 20 metro areas reported positive home price appreciation and their annual growth rates ranged from 8.8% to 57.1%. Among all 20 metro areas, fifteen metro areas exceeded the national average of 28.2%. Dallas led the way with a 57.1% increase, followed by Tampa with a 49.9% increase and Seattle with a 49.2% increase. The scatter plot below lists the 20 major U.S. metropolitan areas’ annual growth rates in February and in March 2022. The X-axis presents the annual growth rates in February; the Y-axis presents the annual growth rates in March. Seven out of the 20 metro areas had a deceleration in home price growth, including Los Angeles, San Diego, San Francisco, Chicago, Boston, Portland, and Seattle. Related ‹ Multifamily Employee Compensation Costs Rise 12 Percent Year-Over-YearTags: FHFA Home Price Index, home prices, S&P CoreLogic Case-Shiller Home Price Index

Home Prices Surged in March2022-05-31T12:37:56-05:00

Employment Situation in April: State-Level Analysis

2022-05-23T10:25:07-05:00

Nonfarm payroll employment increased in 41 states and the District of Columbia in April compared to the previous month while eight states lost jobs. North Dakota remained unchanged. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 428,000 in April, following a gain of 428,000 jobs in March. On a month-over-month basis, employment data was strong in Texas, which added 62,800 jobs, followed by Florida (+58,600) and California (+41,400). Eight states lost a total of 11,400 jobs.  In percentage terms, employment in New Hampshire increased by 1.0% while Missouri reported a 0.2% decline between March and April. Year-over-year ending in April, 6.6 million jobs have been recovered, marking the economic rebound from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 925,200 jobs in California to 6,700 jobs added in Vermont. In percentage terms, Nevada reported the highest increase by 8.0%, while Kansas increased by 1.7% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 26 states reported an increase in April compared to March, while 20 lost construction sector jobs. Alaska and Rhode Island reported no change. Florida added 4,300 construction jobs while California lost 13,200 jobs. Overall, the construction industry added a net 2,000 jobs in April compared to the previous month. In percentage terms, South Dakota increased by 1.5% while Arkansas reported a decline of 2.7% between March and April. Year-over-year, construction sector jobs in the U.S. increased by 235,000, which is a 3.2% increase compared to the April 2021 level. Texas added 36,600 jobs, which was the largest gain of any state, while Pennsylvania, lost 2,500 construction sector jobs. In percentage terms, Wyoming had the highest annual growth rate in the construction sector by 11.5%. Over this period, Kentucky reported a decline of 2.8%. Related ‹ Gains for Custom Home BuildingTags: construction labor, economics, state and local markets, state employment

Employment Situation in April: State-Level Analysis2022-05-23T10:25:07-05:00

Solid Job Gains in April

2022-05-06T11:21:50-05:00

Total nonfarm payroll employment increased by 428,000 in April, and the unemployment rate was unchanged at 3.6%. The April’s data indicate that the labor market remained healthy despite surging inflation, tighter financial conditions, and the war in Ukraine. Construction industry employment (both residential and non-residential) totaled 7.6 million and has returned to its February 2020 level. Non-residential construction lost 2,000 positions in April, reflecting a decline in nonresidential specialty trade contractors (-6,400). Meanwhile, residential construction employment added 3,800 jobs, after an increase of 10,600 jobs in March. Residential construction employment currently exceeds its level in February 2020, while 75% of non-residential construction jobs lost in March and April have now been recovered. Total nonfarm payroll employment increased by 428,000 in April, the same gain as in March, as reported in the Employment Situation Summary. Job gains for February and March were revised downward. The February estimate was revised down by 36,000 from +750,000 to +714,000, while the March increase was revised down by 3,000 to +428,000. In the first four months of 2022, nearly 2.1 million jobs were created, and monthly employment growth averaged 519,000 per month. As of February 2022, total nonfarm employment is 1.2 million lower than its pre-pandemic level in February 2020, almost fully recovered from the COVID-19 pandemic. Meanwhile, the unemployment rate was unchanged, at 3.6% in April. It was 11.1 percentage points lower than its recent high of 14.7% in April 2020 and 0.1 percentage point higher than the rate in February 2020. The labor force participation rate, the proportion of the population either looking for a job or already with a job, decreased 0.2 percentage points to 62.2% in April. It marks the lowest rate in the past three months. The number of persons unemployed was little changed, while the number of persons employed decreased by 353,000. The labor force participation rate for people who aged between 25 and 54 decreased to 82.4% in April. Additionally, according to the Household Survey supplemental data, which come from questions added to the Current Population Survey (CPS) since May 2020, 7.7% of employed persons teleworked or worked at home in the last 4 weeks specifically because of the coronavirus pandemic in April, down from 10.0% in the previous month. The share of the employed who teleworked has declined for the past three months. A year ago, in April 2021, 18.3% of employed persons teleworked because of the coronavirus pandemic. Job gains in April were widespread, led by gains in leisure and hospitality, manufacturing, and transportation and warehousing. Employment in the overall construction sector was barely changed (+2,000) in April, following a gain of 20,000 in March. Residential construction added 3,800 jobs, while non-residential construction employment lost 2,000 positions in April. Residential construction employment now stands at 3.1 million in March, broken down as 897,000 builders and 2.2 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 11,267 a month. Over the last 12 months, home builders and remodelers added 113,200 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,157,300 positions. In April, the unemployment rate for construction workers declined by 0.9 percentage points to 3.9% on a seasonally adjusted basis. The unemployment rate for construction workers has been trending lower, after reaching 14.2% in April 2020, due to the housing demand impact of the COVID-19 pandemic. Related ‹ The Fed Commits to Aggressive Tightening of Monetary PolicyTags: employment, labor force, labor force participation rate, residential construction employment

Solid Job Gains in April2022-05-06T11:21:50-05:00

GDP Unexpectedly Decreases in the First Quarter

2022-04-28T11:23:20-05:00

In the first quarter of 2022, real GDP declined for the first time since the pandemic recession, as inflation surged to a 40-year high and supply chain disruptions remain persistent. This quarter’s decrease reflected a deceleration in private inventory investment, decreases in exports and government spending and an increase in imports. According to the “advance” estimate  released by the Bureau of Economic Analysis (BEA), real gross domestic product (GDP) decreased at an annual rate of 1.4% in the first quarter of 2022, after a 6.9% increase in the fourth quarter of 2021. It marks the worst quarter since the pandemic recession in the second quarter of 2020. In the first quarter of 2022, the decrease in real GDP reflected a deceleration in private inventory investment, led by decreases in wholesale trade and retail trade, and decreases in both federal and state and local government spending, and exports, while imports, which are a subtraction in the calculation of GDP, increased. Consumer spending rose at an annual rate of 2.7% in the first quarter of 2022, compared to a 2.5% increase in the fourth quarter of 2021. Expenditures on services increased 4.3% at an annual rate, while goods spending decreased 0.1% at an annual rate, led by nondurable goods, such as gasoline and other energy goods (-15.0%). While nonresidential fixed investment rose 9.2%, residential fixed investment (RFI) increased 2.1% in the first quarter. The increase in nonresidential fixed investment reflected increases in equipment (+15.3%) and intellectual property products (+8.1%). Within residential fixed investment, single-family structures rose 14.1% at an annual rate and multifamily structures rose 1.1%. The decrease in exports reflected the decrease in goods, which was partly offset by an increase in “other” business services. Federal government spending decreased 5.9% in the first quarter, reflecting a decrease in national defense spending on intermediate goods and services, while state and local government spending declined 0.8%. Related ‹ Homeownership Rate Stable at 65.4%Tags: economics, gdp, macroeconomics, macroeconomy, residential fixed investment

GDP Unexpectedly Decreases in the First Quarter2022-04-28T11:23:20-05:00

Employment Situation in March: State-Level Analysis

2022-04-21T10:16:02-05:00

Nonfarm payroll employment increased in 34 states and the District of Columbia in March compared to the previous month while 16 states lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 431,000 in March, following a gain of 750,000 jobs in February. On a month-over-month basis, employment data was strong in California, which added 60,200 jobs, followed by Texas (+30,100) and New York (+28,100). Sixteen states lost a total of 22,000 jobs.  In percentage terms, South Dakota employment increased by 0.6% while Wyoming reported a 0.4% decline between February and March. Year-over-year ending in March, 6.5 million jobs have been recovered, marking the economic rebound from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 1.0 million jobs in California to 5,000 jobs added in Alaska. In percentage terms, Nevada reported the highest increase by 9.1%, while Kansas increased by 1.5% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 34 states reported an increase in March compared to February, while 13 lost construction sector jobs. Idaho reported no change. California added 8,900 construction jobs while New York lost 3,700 jobs. Overall, the construction industry added 19,000 jobs in March compared to the previous month. In percentage terms, South Dakota increased by 7.2% while Mississippi reported a decline of 3.3% between February and March. Year-over-year, construction sector jobs in the U.S. increased by 220,000, which is a 3.0% increase compared to the March 2021 level. Texas added 31,800 jobs, which was the largest gain of any state, while Pennsylvania, lost 2,200 jobs. In percentage terms, Wyoming had the highest annual growth rate in the construction sector by 11.1%. Over this period, Kentucky reported a decline of 1.1%. Related ‹ Existing Home Sales Fall for Second Month While Prices Reach Record HighBuyers’ Perceptions of Housing Availability Fall Back to 2018 Levels ›Tags: construction labor, economics, state and local markets, state employment

Employment Situation in March: State-Level Analysis2022-04-21T10:16:02-05:00

Residential Building Worker Wages Continue to Rise

2022-04-04T10:21:24-05:00

By Jing Fu on April 4, 2022 • Compared to a year ago, average hourly earnings for residential building workers continue to rise, as the construction labor market remains tight. According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $28.66 in February 2022, increasing 6% from $27.01 a year ago. This was 16.7% higher than the manufacturing’s average hourly earnings of $27.90, 12.9% higher than transportation and warehousing’s, and 10.8% lower than mining and logging’s. In February, the job openings rate in construction remained elevated at 4.8% and the unemployment rate fell to 3.6% in March. As skilled labor shortage persists, rising wages may be one of the effective ways to attract employees to fill empty positions. Average hourly earnings for residential building workers have increased significantly since the COVID-19 pandemic recession. Between December 2019 and December 2021, residential building workers’ average hourly earnings increased about 12%. Related ‹ Job Growth Continued in MarchTags: average hourly earnings, labor market, residential building, wages

Residential Building Worker Wages Continue to Rise2022-04-04T10:21:24-05:00

Job Growth Continued in March

2022-04-01T11:20:40-05:00

Total nonfarm payroll employment increased by 431,000 in March, and the unemployment rate fell to 3.6% from 3.8%. The labor market recovery is continuing, as employment in some sectors, such as professional and business services, financial activities, and retail sectors, is now above pre-pandemic levels. Construction industry employment (both residential and non-residential) totaled 7.6 million and has returned to its February 2020 level. Residential construction gained 7,600 jobs, while non-residential construction added 11,300 jobs for the month. Residential construction employment currently exceeds its level in February 2020, while 76% of non-residential construction jobs lost in March and April have now been recovered. Total nonfarm payroll employment increased by 431,000 in March, following a gain of 750,000 in February, as reported in the Employment Situation Summary. Job gains for January and February were revised upward. The January estimate was revised up by 23,000 from +481,000 to +504,000, while the February increase was revised up by 72,000 to 750,000. In the first quarter of 2022, nearly 1.7 million jobs were created, and monthly employment growth averaged 562,000 per month, the same as the average monthly gain for 2021. As of February 2022, total nonfarm employment is 1.6 million lower than its pre-pandemic level in February 2020. Meanwhile, the unemployment rate decreased by 0.2 percentage points to 3.6% in March. It was 11.1 percentage points lower than its recent high of 14.7% in April 2020 and 0.1 percentage point higher than the rate in February 2020. The labor force participation rate, the proportion of the population either looking for a job or already with a job, increased 0.1 percentage point to 62.4% in March, as the number of persons unemployed decrease and the number of persons employed increased. It marks the highest level since March 2020, as more people are reentering the labor force. Additionally, according to the Household Survey supplemental data, which come from questions added to the Current Population Survey (CPS) since May 2020, 10.0% of employed persons teleworked or worked at home in the last 4 weeks specifically because of the coronavirus pandemic in March, down from 13.0% in the previous month. The share of the employed who teleworked has declined over the past two months. A year ago, in March 2021, 21.0% of employed persons teleworked because of the coronavirus pandemic. Job gains in leisure and hospitality, professional and business services, retail trade, and manufacturing continued in March, while employment in mining, wholesale trade, information, other services, and government changed little. Employment in the overall construction sector increased by 19,000 in March, following a gain of 57,000 in February. Residential construction added 7,600 jobs, and non-residential construction employment rose by 11,300 in March. Residential construction employment now stands at 3.1 million in March, broken down as 889,000 builders and 2.2 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 11,783 a month. Over the last 12 months, home builders and remodelers added 103,000 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,153,000 positions. In March, the unemployment rate for construction workers declined by 0.2 percentage points to 4.8% on a seasonally adjusted basis. The unemployment rate for construction workers has been trending lower, after reaching 14.2% in April 2020, due to the housing demand impact of the COVID-19 pandemic. Related ‹ 2021 State-Level GDP Data: ReboundingTags: employment, labor force, labor force participation rate, residential construction employment

Job Growth Continued in March2022-04-01T11:20:40-05:00

About My Work

Phasellus non ante ac dui sagittis volutpat. Curabitur a quam nisl. Nam est elit, congue et quam id, laoreet consequat erat. Aenean porta placerat efficitur. Vestibulum et dictum massa, ac finibus turpis.

Recent Works

Recent Posts