October Jobs Report Commentary from MBA's Joel Kan
The following is MBA VP and Deputy Chief Economist Joel Kan’s reaction to this morning’s U.S. Bureau of Labor Statistics report on employment conditions in October.
“The job market continued to fare reasonably well in October but showed signs of weakening – there was a slowing in the pace of job growth, hiring is occurring across fewer industries, and previous months’ numbers were revised lower. While the job market remains generally resilient, inflation is still the key metric for the Fed as it weighs the policy path over the next few months. We continue to expect them to hold the fed funds rate at its current level until 2024, when their next rate move is likely to be a cut.
“Regarding housing, construction hiring increased for the seventh consecutive month, and the sector has added 148,000 jobs so far this year. Low levels of pre-owned housing inventory have pushed prospective buyers to new homes, increasing the need for workers, while owners staying in their current homes continue to invest in home improvement projects and repairs. A strong job market is nevertheless supportive of the housing market, both in terms of home buying and mortgage performance.”