US

US job growth surged more than expected in June and employers increased hours for workers, signs of labor market strength that could keep the Federal Reserve on course for a third interest rate increase this year despite benign inflation.

Non-farm payrolls jumped by 222,000 jobs last month, the Labor Department said Friday, beating economists’ expectations for a 179,000 gain.

Data for April and May was revised to show 47,000 more jobs created than previously reported.

While the unemployment rate rose to 4.4 percent from a 16-year low of 4.3 percent, that was because more people were looking for work, a sign of confidence in the labor market. The jobless rate has dropped four-tenths of a percentage point this year and is near the most recent Fed median forecast for 2017.

The average workweek increased to 34.5 hours from 34.4 hours in May. Labor market buoyancy could also encourage the US central bank to announce plans to start reducing its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities in September.

The Fed raised its benchmark overnight interest rate in June for the second time this year. But with inflation retreating further below the central bank’s 2 percent target in May, economists expect another rate hike only in December.

June’s employment gains exceeded the 186,000 monthly average for 2016, reinforcing views that the economy regained speed in the second quarter after a sluggish performance at the start of the year.

But the pace of job growth is expected to slow as the labor market hits full employment. There is growing anecdotal evidence of companies struggling to find qualified workers.

As a result, companies are gradually raising wages in an effort to attract and retain their employees. Economists expect worker shortages to boost wage growth, which has remained stubbornly sluggish despite the tightening labor market.

Average hourly earnings increased 4 cents, or 0.2 percent, in June after gaining 0.1 percent in May. That lifted the year-on-year increase in wages to 2.5 percent from 2.4 percent in May.

President Trump, who inherited a strong job market from the Obama administration, has pledged to sharply boost economic growth and further strengthen the labor market by slashing taxes and cutting regulation.

But Republicans have struggled with health care legislation and there are also worries that political scandals could derail the Trump administration’s economic agenda.

The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population.

But there is still some labor market slack. A broad measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, rose to 8.6 percent last month from 8.4 percent in May, which was the lowest since November 2007.

The labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, rose one-tenth of a percentage point to 62.8 percent.

Employment gains were broad in June, with manufacturing payrolls increasing 1,000 after factories shed 2,000 jobs in May. But the automobile sector lost a further 1,300 jobs as slowing sales and bloated inventories force manufacturers to cut back on production.

It looks like like Seattle continues to make history according to the market index updates from local sources See full story and link below

Hopeful home buyers in the Seattle area are up against the toughest purchasing prospects in the country as the market again posted leading price gains while diminished inventory has made the competition fierce.

Multiple reports Tuesday morning showcase just what buyers are up against as they look to purchase something — anything — that comes up for sale in Seattle. The Seattle Times cited the monthly Case-Shiller home price index, which showed a 12.3-percent year-over-year increase for single family home prices in the metro area in March. It’s the fastest growth in more than three years and easily outdistances increases in Portland (9.2 percent), Dallas (8.6 percent), Denver (8.4 percent) and Boston (7.7 percent).

Seattle also more than doubles the national average for price gains, which are at 5.8 percent.

Seattle-based real estate company Redfin released its Demand Index on Tuesday, and it shows what buyers are certainly learning the hard way as prime selling season approaches — there just aren’t enough houses available for interested parties.

Seattle is the most inventory-constrained metro, as measured by months of supply, but it also has the third smallest amount of inventory, following Oakland and San Francisco, Redfin said. Seattle posted the largest year-over-year decrease in inventory, down 35 percent from last April. In the same period, the number of Redfin customers making offers climbed by 36.9 percent, an indication that the market is more competitive for buyers this year than it was last year.

“There’s no indication that this market is going to see a drastic increase in supply or a drop in demand, so waiting isn’t an option for a serious buyer,” said Redfin Seattle agent Kyle Moss in the company’s blog post. “People intent on purchasing this season should be discerning and focus on the one or two criteria that are most important to them, like commute time and/or schools. From there, carve out a list of homes that meet your qualifications and work alongside an agent who has experience winning offers in competitive situations to build and execute a competitive strategy that fits your budget.”

Colorado leads the way

BY BARBARA ELDREDGE @BARBARAELDREDGE JUN 20, 2017, 9:30AM EDT

The proportion of U.S. homes listed at or above $1 million is steadily growing. Between 2014 and 2017, seven-figure-plus abodes increased from 3.2 percent of U.S. listings to 4.3 percent. While that number might not sound enormous, the increase has had an outsized impact on certain urban areas. Realtor.comranked more than 900 metro areas by their rate of increase in million-dollar listings over the last three years, excluding already-pricey towns like Aspen and San Francisco.

As it turns out, Colorado is home to two of the top-three towns where the proportion of seven-figure listings has grown the most. Denver, Colorado, which has a booming tech scene and burgeoning pot industry, leads the list with a 6.1 percent increase in its proportion of million-dollar homes. Just three years ago, Denver was a solid middle-class market. But by the first quarter of 2017, nearly 1 in 10 Denver homes hit the $1 million mark.

Close on Denver’s heels is Santa Rosa, California. Just an hour north of San Francisco, the town is fast becoming a new kind of bedroom community for its neighbor to the south. “We have a lot of people who work remotely, or they go to the office twice a week,” said real estate agent Kimberly Sethavanish from Kimberly James Real Estate. “They’d rather live here and have a little bit more land than [buy] a 800-square-foot house in [San Francisco].”

Third place goes to Boulder, Colorado, which has also been experiencing a tech boom and shortage in affordable housing. Other cities on the list include Truckee, California; Fredericksburg, Texas; Heber, Utah; Boston, Massachusetts; Seattle, Washington; Santa Fe New Mexico; and Charleston, South Carolina. Find the full report here.

Tag: US

US Job Growth Shines In June

Seattle Housing Torrid Pace Continues

The U.S. cities where million-dollar homes are surging

Colorado leads the way