“The recovery of the housing market has really been the proverbial rising tide that lifts all boats.”
Pasadena, CA (PRWEB) January 25, 2013
The number of Americans filing for unemployment has dropped to its lowest numbers in five years, according to Thursday’s report from the Labor Department. The decline points to an improving job market, reflected in employment data on Hound.com.
The Labor Department announced Thursday that unemployment claims had fallen to their lowest numbers in five years. Weekly applications for unemployment benefits dropped 5,000 to a seasonally adjusted 330,000 – the lowest it has been since January 2008. The four-week average dropped as well, to a five-year low at 351,750. Because applications for unemployment benefits are often considered a proxy for layoffs, a drop in unemployment claims is a positive sign that more people are going back to work. While these numbers may not account for layoffs for seasonal hiring that typically occur after the holidays, if the trend continues, it could be a signal of an improving job market.
The news from the Labor Department comes on the heels of other indicators of a more robust economy, including rising home sales and a rebounding construction sector. The recovery of the housing market has spurred job growth in related sectors, including construction and home-building. Residential and commercial building starts continued to climb in December, resulting in new jobs in those sectors. This has included blue-collar jobs in construction and manufacturing, as well as white-collar jobs, such as real estate agents, brokers, and lawyers.
These employment trends have been reflected in hiring data on Hound.com, a leading job site. Real estate and construction jobs have spiked in recent months, helped along by aggressively low mortgage rates and pent-up consumer demand. As of January 24, Hound reported 3,042 jobs in real estate and 3,061 jobs in construction. Hiring has been particularly strong as these industries seek to fill a labor void created during the recession, when the market was down and those in real estate and construction left in droves. Now that the housing market is gaining momentum again, there is an urgent demand to replace the jobs that were lost a few years ago.
“The recovery of the housing market has really been the proverbial rising tide that lifts all boats,” said Harrison Barnes, CEO of Hound.com. “It creates a ton of jobs in areas related to both the actual construction of the building, as well as in the sale of the home. It also generates revenue by increasing the property tax base in these communities, which means more money for things like local schools - which leads potentially to even more jobs being created. It really is a ripple effect, so the fact that the housing market is improving leaves me optimistic about the future of the job market.”
Hound.com is a job search site based in Pasadena, CA. It is a part of the Employment Research Institute and owned by A. Harrison Barnes.