Latest jobs report 'grim' for housing

Get smarter. Grow your referral network at Inman Connect San Francisco
Limited seating still available, July 17-20

The latest jobs report doesn’t bode well for the housing market, according to Jed Kolko, chief economist at Trulia.

The segments of potential buyers whose economic well-being are most important to helping along the recovery haven’t seen their unemployment rate improve very much, according to the report, Kolko said.

The unemployment rate for young adults was the same as a year ago, and the annual growth rate for people who live in markets hit hardest by the meltdown was below the national average, according to Kolko, who said the report was “grim” for housing.

Furthermore, Kolko said construction job growth in the residential sector is slowing.

Though residential construction employment is up 5 percent year over year, the industry added only 19,000 jobs in the third quarter, compared with 40,000 in the first quarter, Kolko said.