Jobs Report Friday… Why Does It Matter?

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Filed under: Market Comentary

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In a few days, on Friday, is the 1x per month jobs data number report. This comes out the first Friday of every month. It looks at the previous month’s jobs numbers and includes unemployment information. Why does it matter? It’s one of the data points that has the potential to move the market.

Currently: A Tightening Job Market

One of the things we are seeing: this morning’s consumer confidence report shows a tightening job market, and people are starting to feel the pinch a bit more. So, it will be interesting to see how the actual report comes out on Friday.

If the numbers show that things are actually starting to tighten up, then it means that we will likely see the first signs of things happening in the way we would expect. The Fed increases interest rates, companies start to feel the pinch and are a little less likely to borrow money, then these businesses stop hiring.

This is part of the cooling process, which is why most of the time when the Fed changes interest rates to slow inflation then it results in a recession. It’s super important to keep an eye on things. This indicator will be telling of the future. If we see the unemployment rate start to creep up, then it’s going to be a stronger indicator that we could be heading towards recession.

It’s An Expected Part of the Process

But again, it is to be expected. From a real estate perspective: other than 2008, real estate has done quite well through recessions. And the recession means that we should start seeing interest rates come down again. I hate talking about recession because I know it causes pain for some people. But it is one of those things that has to cool off at some point.

We’ll see what happens! It’s a good time to be careful with your spending because there are likely changes coming – it’s pretty predictable. Stay tuned and we’ll find out. Of course, one month doesn’t make a whole trend.

I’ll keep you updated. As always, don’t hesitate to give us a call if you need any help with real estate or mortgages – we are here to help!

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