Friday, February 6, 2009

Labor Market Shed another 600k jobs, further impact housing market

--The major casulty of the job losses are from some colleage or associate degrees holders. --There are 37mil such labor forces, almost a quarter of 150mil labor forces --According American Housing Survey, 19 mil of these people are house owners, out of 75 mil. It the second largest group, next to bachelor and higher degrees holders 26 mil. They are major drivers of housing market. --The group took large hit in Jan 2009, sheding almost 200k jobs. Unemployment increased from 5.6% to 6.2%. --For those with less than higher degree, their jobs loss will have less impact than housing market since few of them are new house owners. Most of house owners with high degrees are seniors. --As to those with colleage and higher degress, only 70k of them lost jobs in Jan 2009. --It is reasonable to believe that housing market will further tanker. American Housing Survey

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