ShareJobs are being added to the economy, but at a slower pace. The unemployment rate of 4.1% in February indicates a slight loosening in the tight labor market. The wage gain of 4% is outpacing the inflation rate of 3%, thereby raising the standard of living.
Some signs of cracks in the economy are emerging. Temporary employment declined along with jobs in leisure and hospitality. In other words, discretionary sectors, as opposed to necessity sectors, are facing challenges. The overall count of government jobs has increased ever so slightly.
If mortgage rates decrease further due to weakening in the job market, home sales will likely rise. The influence of lower rates generally outweighs job losses. Ideally, adding jobs and decreasing mortgage rates would be preferable, but that scenario is more complex.
