Jobs Report: Wall Street Got It Wrong At First – April 05, 2024

Video Transcript

There’s a very clear signal that inflation is cooling off, but you have to know where to actually look, and most people, Wall Street traders included, initially got this wrong. The March jobs report. It released this morning. It showed 303,000 new jobs added to the U.S. economy last month. That is way more than what was projected. And it also showed the unemployment rate falling from 3.9 to 3.8 percent.

At first glance, these numbers, they appear inflationary. But they’re not because the report from the
Bureau of Labor Statistics also shows average earnings for U.S. workers. That number is now 4.1% on the year. That is higher than the rate of inflation, which is 2.9% per year. So it means Americans are able to afford more things.

They are out-earning inflation. Also, the workforce participation rate jumped last month too. So more people are going to work full time. These are all good signs of a healthy, strong economy with price pressures on their way down. Mortgage rates reacted badly when the jobs report first hit, but now rates are on their way back down. We’ve got more mortgage news on the main channel.

Check it out. I’m Dan with Homebuyer.com. Happy homebuying.