Weekly Economic Review: Unemployment Rate Rises from 18-Year Low

Posted by Laine Smith on 7/8/18 2:32 PM

Topics: Economy

In this week’s economic review, the headline of the holiday week was brisk growth in the workforce. Mortgage applications increased as mortgage rates eased.

WEEKLY ECONOMIC REVIEW - 5-15-3-4

Employment Situation

June’s employment report was healthy and showed solid movement with an expected increase of 213,000 to nonfarm payrolls. There was a sharp increase (approximately 0.5 million) in the number of unemployed actively looking for a job, lifting the participation rate 2 tenths to 62.9 percent.

Average hourly earnings rose just 0.2 percent in the month and remains unchanged year-over-year. The average workweek for all employees was unchanged at 34.5 hours.

This week in the economy:

  • As of June 5th, the 30-year average fixed rate was 4.52% with 0.5 points, according to Freddie Mac.
  • In the week of June 29th, the purchase index rose a seasonally adjusted 1 percent as refinancing applications continued their descent, down 2 percent from the previous week. Unadjusted, purchase applications are 1.4 percent down from a year ago.
  • In the week of June 30th, initial jobless inched up 3,000 higher to a level of 231,000. The 4-week average is also trending higher, up 2,250 to 224,500.
  • The Bloomberg Consumer Comfort Index rose 3 tenths in the week of July 1 to a level of 57.6. In the last three weeks, the index has added nearly 2 points.

The economic calendar for the week of July 9th, 2018:

  • Monday – Consumer Credit
  • Tuesday– JOLTS
  • Wednesday – MBA Mortgage Applications
  • ThursdayJobless Claims, Bloomberg Consumer Comfort Index, Consumer Price Index
  • Friday– Consumer Sentiment

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