Three Housing Takeaways From Jobs Report
NEW YORK (TheStreet) -- Friday's strong jobs report had some good news for housing.
Kolko looked at three data points in the monthly report to see if a) housing was helping job growth and b) if job growth was helping housing.
Residential construction employment data showed that the housing recovery is helping job growth. Employment in the category, which includes residential specialty trade contractors, grew by 8,400 in November from the previous month. In the past three months, 20,300 jobs have been created in the category. Year over year, residential construction jobs rose 5%, which outpaces the growth in overall employment of 1.7%.
Of course, the recovery in construction jobs is long overdue. Kolko noted that residential construction jobs are still 37% below peak, while overall employment is 0.9% below peak.
Meanwhile, it appears that more job creation could further stimulate housing. Employment among 25-34 year olds, who typically represent the first-time homebuyer, rose to 75.2% from 75% in the previous month. That is still below the pre-bubble norm of 78-80%.
The high level of unemployment in this age group has led to a historically low rate of household formation, which is holding back the housing recovery.
There is some relief for cities hit hard by the housing crisis. Job growth in so-called "clobbered metros" rose 1.9% in October, ahead of 1.7% nationally, according to data released Thursday. In Tampa, Fla., employment rose 3.4% in October, while Orlando, Fla., and Fort Lauderdale, Fla., saw 2.8% and 2.6% increases, respectively.
-- Written by Shanthi Bharatwaj in New York.