As I’ve mentioned many times on this blog, one of the key factors to improving the national housing market, and our Boston real estate market, is through the creation of good paying jobs.
The New York Times ran an article on the front page entitled: U.S economy gains steam as 200,000 jobs are added. In the Times article it went on to state: “Maybe it is time to start calling the glass half full.” As much as I respect the reporting of the Times, I do have a few issues with this article.
First, let’s discuss what type of jobs are being created. Of the 200,000 jobs created more than half were concentrated on the low-wage sector of the economy.
The following is a break down of the jobs that were created in December according to the Bureau of Labor Statistics.
Of the 200,000 jobs created:
— Transportation and Warehousing created 50,000 jobs. In other words, they were delivering packages. I wonder how many of these Santa’s helpers are still employed.
— Retail Trade: Created 28,000 of which almost all were in merchandise stores and clothing and clothing assessories. Once again, how many of those jobs can we contribute to Santa?
— Food services and drinking places – 24,000 jobs were created in December.
Out of the 200,000 jobs created 102,000 were low wage sector jobs. How many of those workers do you think will be purchasing a single-family home or condo this year?
File Under: Half full?