US Housing Providing Boost to Labor Market

This is good.

US Housing Providing Boost to Labor MarketConstruction hiring jumped in February by the most in almost six years, highlighting the benefits to the U.S. economy from a revitalized housing market.

Builder payrolls surged by 48,000 workers, the most since March 2007 and the ninth straight increase, Labor Department data showed today in Washington. The gain accounted for 20 percent of the 236,000 increase in total employment. The jobless rate fell to a four-year low of 7.7 percent.

via Housing Rebound Is Providing Bigger Boost to U.S. Labor Market – Bloomberg.

However, we must not lose sight of the increase in payroll taxes and the fiscal cuts on the federal level. The unemployment number looks better, but that’s largely due to people having dropped out of the labor market because they simply could not find employment.

We tweeted this earlier: “To praise the February jobs report is to embrace the New Normal economy.” Please note that the article says, “…if the LFP [Labor Force Participation] rate was [means were now] where it was in January 2009, the unemployment rate would be 10.8%.” In addition, we don’t believe even at that 10.8%, we’re talking about the U-6 unemployment rate, which U-6 reflects part-time and underemployed aspects.

We also tweeted this: “We’d like to add that in our view, “supply-side” fiscal austerity during a private-deleveraging jobs-recession is not the right approach.