In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses unemployment insurance claims.
- After a worrying uptick in last week’s initial claims for unemployment insurance, this week’s report is a relief. Initial claims for unemployment insurance filed in the week ending May 18 dropped to 340,000, a decrease of 23,000 claims from the previous week’s upwardly revised level.
- A lower level of initial claims for unemployment insurance means fewer layoffs in existing jobs and greater job security. Claims for unemployment insurance are back to the levels seen before the Great Recession.
- Still, fewer layoffs are just one part of a healthy job market; job creation has to pick up to fully recover the jobs lost during the recession and absorb new entrants. About 3 million lost jobs are still to be recovered.
- What this Means for REALTORS®: Job additions help both commercial real estate occupancy demand and enlarge the pool of potential homebuyers. Improving times ahead for real estate practitioners.