Taking a closer look at the May jobs report

In today’s HousingWire Daily episode, HousingWire Junior Digital Producer Victoria Jones joins HousingWire Managing Editor James Kleimann to discuss the hottest topics coming across HousingWire’s news desk. In this episode, Jones and Kleimann discuss the latest jobs report from the U.S Bureau of Labor Statistics and also examine why there has been an uptick in executive departures at Fannie Mae. 

The pair also review last week’s biggest stories, and the topics the HousingWire editorial team will cover in the week ahead.

For some background on the interview, here’s a brief summary of HousingWire’s latest coverage of the May jobs report:

Total nonfarm payroll employment rose by 559,000 in May, below economists’ predicted rate of 675,000 new jobs. According to the U.S Bureau of Labor Statistics, unemployment now stands at 5.8% – around 30 basis points lower than April and now at its lowest rate since the pandemic began. So what does that mean for the housing industry, and the likelihood the Fed will change course on monetary policy?

According to the government’s statistics, job gains were again concentrated in the service industry, which showed an increase of 489,000 jobs in May. Within this sector, the leisure and hospitality components sported the most robust job gains, posting an increase of 292,000 jobs, indicators that American life is creeping back to normal.

There were disappointments for the real estate sector, too. The overall construction sector actually lost 20,000 jobs in May, though it was mostly concentrated among nonresidential specialty trade contractors. The construction sector remains an economic weak spot in many respects – it’s down 225,000 jobs from prior to the pandemic.

While commercial contractors are truly suffering, residential construction employment is at least moving in the right direction, even if gains there are tepid at best for the housing industry. According to the BLS statistics, residential construction employment, including specialty trade contractors, rose by just 1,900 jobs in May.

HousingWire Daily examines the most compelling articles reported across HW Media. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Jones.

HousingWire articles covered in this episode:

• May jobs report a mixed bag for housing industry
• Behind the executive exodus at Fannie Mae
• FHFA extends forbearance for rental properties
• Supreme Court decision on FHFA expected at any time