In November, the unemployment rate dropped to 8.6 percent. The decline was the largest since the recession began and marked the first time the rate has fallen below 9.0 percent since March 2009. The data from the U.S. Bureau of Labor Statistics shows private employment added 206,000 jobs during the month. An improving jobs environment is key to accelerating the housing market’s recovery and November’s report contains a number of encouraging indicators. For example, the unemployment rate for people between the ages of 25 and 34 dropped to 9.2 percent from 9.8 percent in October. Young adults are an important demographic for the housing market due to the demand created as they buy their first home and start families. During the economic crisis, household formation fell among this key group and their return to the labor market should lead to increased demand among first-time buyers. More here and here.
