The August jobs report shows a shift toward part-time work and fewer full-time positions. The speaker breaks down job growth numbers, revisions to prior months, and what the labor market changes mean for mortgage rates.
The August jobs report just came out and as we predicted, the numbers were kind of weak. So the expectation was 160,000 new jobs. It came in at 142,000 new jobs. And then they went back and revised the previous two months lower, which they love doing after the fact. So July's report of 114,000 new jobs cut back to 89,000 new jobs. June's report of 206,000 new jobs cut back to 118,000 new jobs. More weakness of the economy. This is good for lower mortgage rates. And then the household survey, where they mail surveys out to households across the country to fill out, it showed that the good news is we gained 527,000 part time jobs, but we lost 438,000 full time jobs. That's not an even exchange. People are getting their hours cut and getting part time work instead of their full time substantial jobs. The issue with a lot of the housing reports, they just look at the number of heads that are working. They don't dive into the details. This will take the market to digest just like we are. And as they do, this is more fuel for lower interest rates.
