An interesting piece of the jobs report is that the unemployment rate fell in the management, professional, and related occupations category to 2.5%. Jobs in this category include, attorneys and accounts. These tend to be higher paying jobs. Thus, the latest jobs report may be a sign that less people are making more money. Despite the monthly increase in overall unemployment, overall job growth year over year is still positive. Year over year growth is more reliable than month to month statistics. Perhaps last month's report is a statistical blip rather than a sign of actual weakness in the labor market. The small business owners that I talk with are desperate for qualified workers and the local Starbucks is hopping at all times of the day and on weekends too, from what I can observe. No sign of reduced spending or decreasing hiring needs there. Another interesting note is that the 6 month unemployment rate was 4.7% and as it has been for several months. 4.7% is very low from an historical perspective.Why the focus on unemployment and growth? I don't think I can say this enough: People with jobs keep and buy homes. As the economy slows, consumer at the very least become reluctant to buy large ticket items, like homes. This causes sales to at least slow. If the economy slows more than a little than companies shed jobs and people without jobs do not, in most case can not, buy homes. Also, homeowners who lose their jobs and often are forced to sell and this causes prices to decline. Thus, a solid stable growing economy with low unemployment is a great environment to buy and sell homes. The evidence in the July unemployment report does not look bad once you dig into the details. Sources for these comments are Gene Epstein, Tom Sullivan, Michael Santoli all from the August 7 Barron's, and the jobs report from the BLS - http://www.bls.gov/bls/newsrels.htm.

Staff writer for the Pasadena Star News reported on 7/22/06 that Los Angeles County unemployment dropped to 4.6% in June 2006. As reported in the Pasadena Star News, according to Gary Kaplan, president of the executive search firm Gary Kaplan and Associates "the job market is even stronger than at the height of the technology boom prior to 2001".

Mr. Kaplan's comments is another indicator of how much the job market has strengthened since 2001. The strength in employment bodes well for continued strength in the Los Angeles County housing market.