Bad News on US Jobs Data
Latest US jobs data show that 10.2% of the US workforce is now out of work.
This was worse than analysts projections and means that medium term house price forecasts will now be turned slightly further to the negative side as the faster than expected growth in unemployment is factored back into the property price forecasts.
In the UK things look worse with the economy failing to pull out of recession, unemployment continuing to rise and local insolvency practitioners working harder than ever.
Insolvency practitioners are the undertakers of the business world and this year they have been exceptionally busy and in the words of one practitioners are ’seeing a lot of good entrepreneurial businesses go bust’.
This is steadily destroying the ability of the economy to meet demand in the future. In the future it won’t be there and instead we will either have anemic growth or high inflation – and possibly both.
And, such conditions coupled with high and persistent unemployment will drain the property market of buyers and hurt their affordability. This will create a sustained downward pressure on property prices in the UK and US.
UK job data is due on 11th November – and is expected to see 2.5m total unemployed with very weak levels of job creation