Job Growth Sags, Possibility of Recession Grows
Downturns in the housing and credit sectors are dragging down the labor market, according to an analysis by Grubb & Ellis Company. Only 18,000 net new non-farm payroll jobs were generated in December, the lowest level since August 2003.
Downturns in the housing and credit sectors are dragging down the labor
market, according to an analysis by Grubb & Ellis Company. Only
18,000 net new non-farm payroll jobs were generated in December, the
lowest level since August 2003.
The unemployment rate was moderate at 5.0 percent, but increased from
November's 4.7 percent. Several sectors continued to add jobs last
month, including education and health services, professional and
business services, and government, which could benefit general and
medical office properties.
With current trends, the odds of a near-term recession are fifty-fifty,
says Bob Bach, senior vice president, chief economist with Grubb &
Ellis Company.
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