This week we will see the first release of economic performance in 2015. Not only is it the first data release, but also the most important release of all. It is the jobs report for January. There will be a series of releases on the employment situation this week, but the most significant number is Friday's jobs report. Why do jobs represent the most important data?
The creation of jobs fuels the economy. People with jobs spend more money.
The money they spend creates other jobs. For example, if they purchase a car, it
creates manufacturing jobs. If they purchase a new home, it creates
constructions jobs. That does not even count jobs for real estate agents, loan
officers, appliance manufacturers and several other sectors connected with the
housing industry. As a matter of fact, the real estate industry is the best
example of the effects of job creation.The National Association of Home Builders has stated that the construction of 1,000 homes creates approximately 3,000 jobs. When people buy homes, it creates jobs and then these people can also purchase homes. Thus, if you want to see how real estate will do this year, watch the jobs report. Last year was the best year for job creation in over a decade. Let's hope the good news continues in this regard.
Mike Ervin
Branch Manager/Mortgage Banker
NMLS: 282715
O: 650.735.5261
C: 650.766.8500
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