The Metropolitan Area unemployment rates were released by the St Louis Federal Reserve this evening for August 2011.
We know the State of Minnesota held at 7.2% unemployment rate for August, but now we can see how our local real estate market is doing with the unemployment rate.
For August 1st, 2011 the unemployment for Minneapolis, St-Paul-Bloomington, MN-WI MSA (aka The Twin Cities) took a pretty significant drop from 7.4% to 6.7%. Unfortunately there is no information suggesting why that drop took place. A couple of theories are: Minnesota added 5,800 jobs, a large number would be in the Twin Cities and that there was a spike in unemployment due to the State shutdown. These were explanations given for the State unemployment figures, and I just figure they would hold true for the Twin Cities…
Headed the right direction! Long ways to go to get back below 5%, not even to mention 2% like we saw in the late 1990’s. This is a good reduction and we should be happy for small gains. Let’s hope for many more reports this direction.
As regular readers, you already know that the number one thing hurting our real estate market is the lack of jobs. That is why I am watching the unemployment rates.
Updated: Forgot to mention: Figure are NOT seasonally adjusted.
- Twin Cities Real Estate Market Pent up Demand (craigkamman.wordpress.com)
- Hennepin County & Minneapolis/St. Paul, Minnesota Unemployment Rates August 31 2011 (craigkamman.wordpress.com)
- Twin Cities doesn’t have a housing inventory problem, we have a jobs problem. (craigkamman.wordpress.com)
- Minnesota Unemployment Rate up to 7.2% August 19,2011 (craigkamman.wordpress.com)
- Plymouth, MN Median Home Prices Declined by Only 2.3% Year Over Year Through August 2011 (johnmurphyreports.com)
- Maple Grove, MN Median Home Prices Decline by 15% Year over Year Through August 2011 (johnmurphyreports.com)