MetroIntelligence Economic Update by P. DUFFY
October job openings fall to lowest level in 32 months
The number of job openings decreased to 6.6% to 8.7 million on the last business day of October, the lowest level in 32 months. The number of officially unemployed persons versus open jobs fell over 25% during the month to 2.2 million, or 1.34 jobs per unemployed person. The number of people quitting edged down 0.5% to 3.6 million, and the quits rate remained at 2.3%, more or less at pre-pandemic levels. The ratio of people quitting to open jobs rose three percentage points to 42% due to fewer open jobs.
Zillow forecasts higher affordability and more options for homebuyers in 2024
In 2024, Zillow economists predict home buyers will have more options and a bit more affordability breathing room — but only a bit — after the inventory crunch and mortgage rates rising to 20-year highs were this year’s headline news items. The new starter home will be a single-family rental. More markets will follow New York City’s lead with rental demand surging near downtowns. Traditional home buyers will compete with home flippers for homes that need a little TLC. Artificial intelligence will enhance the home search experience.
November service sector index edges up to 52.7 percent
In November, the Services PMI® registered 52.7 percent, 0.9 percentage point higher than October’s reading of 51.8 percent. The services sector had a slight uptick in growth in November, attributed to the increase in business activity and slight employment growth. Respondents’ comments vary by both company and industry. There is continuing concern about inflation, interest rates and geopolitical events. Rising labor costs and labor constraints remain employment-related challenges.