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Instant Reaction: September Jobs Report

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Bureau of Labor Statistics report on employment conditions in September:

“The key statistic in the September jobs report is the fact that wages grew 2.9%. The tightening labor market, with unemployment at 4.2% and the number of job openings at high levels, assure more wage gains in the near future. Construction jobs, which did not change much in the latest month, will need to increase rapidly in order to relieve the housing shortage facing the country. But in the short term, there will be fewer construction workers building new homes, especially since some will be diverted to rebuilding areas impacted by the hurricanes. Unfortunately, housing shortages will last longer and home prices will no doubt continue to outpace wage growth for the foreseeable future.”