Employment Trends Index (ETI)™ increases for first time in 16 Months

Now, we ordinarily dont get too preoccupied with all the numbers talk becuase they exist in a very “external locus of contol”. Meaning, as Ray Charles would have said it, “It gonna do what it do, baby”. But here is some fun stuff that C.A.R (Calif Assoc of REALTORS) sent out regarding the very important Employment Trends which predicate the health of housing markets:

The Employment Trends Index (ETI)™ for May now stands at 89.9, a 0.2 percent increase from the revised April figure of 89.7, and a 20 percent decrease compared with a year ago, according to a report released Monday by The Conference Board.

“While it is too early to say that the ETI has bottomed, the moderation of the last two months is certainly a sign that the decline in job losses is real and signals that the worst is over,” said Gad Levanon, senior economist at The Conference Board. “However, as the economic recovery over the coming months is likely to be very slow, we still expect the unemployment rate to continue to increase to double digits by the end of this year and into 2010.”

This month, the components of the Employment Trends Index™ showed a mixed picture. The improving indicators were the Percentage of Firms With Positions Not Able to Fill Right Now; percentage of respondents who say they find “Jobs Hard to Get;” Real Manufacturing and Trade Sales; and Job Openings.

As always – none of this matters much without some context around what it may or may not mean to you in your home search. My experience is that coming up with a plan is primary and the wisdom in any of these secondary points flow from that.

On Your Team,

Jesse