Instant Reaction: July Jobs Report

The following is NAR Chief Economist Lawrence Yun’s reaction to today’s July jobs report from the U.S. Bureau of Labor Statistics:

“Another solid month of job creation in July with 255,000 net new jobs. From a year ago, the total now stands at 2.4 million new hires. In recent prior years, wages had been stuck, but the latest trend is showing an upturn. In July, wages grew at the fastest rate since 2009, rising 2.6%. Moreover, hours worked rose a bit including overtime hours, signaling more hirings and wage growth in the upcoming months. Jobs in the construction industry rose at 3.3%, essentially double the total job growth rate. Jobs at furniture stores and garden supply shops are also rising at above the national average. Rising home sales clearly helping in this regard. One dismal area at the moment is the oil and gas extraction sector where job losses are continuing. Given that homebuilders are experiencing labor shortage, a transfer of work into construction could help more home building – something that is critically needed to relieve the ongoing housing shortage. All-in-all, a good job report.”