December Employment Report Bodes Well For U.S. Office Market - 48,000 jobs added in December in office using industries
8 Jan, 2010, New York
In the critical office-using sectors employment increased for the fourth consecutive month, rising 48,000 in December. Financial employment increased by 4,000, a small increase but the first rise in that sector?s employment since July 2007. Since the end of August, office using employment is up 154,000 jobs.
In addition, November's overall employment figures were revised to show a small increase of 4,000 jobs, the first increase in overall employment since December 2007.
Ken McCarthy, managing director of Research for Cushman & Wakefield, the global commercial real estate services firm, said, "While overall employment fell in December, this latest report continues to affirm that there are positive employment trends beginning to take hold, particularly for the office-using industries."
"While we don?t expect an immediate impact on commercial property fundamentals, we can now be more confident in our time horizon for the beginning of a commercial real estate recovery in the middle of 2010," Mr. McCarthy said.
According to Mr. McCarthy, the main reason for the decline in overall employment was a steep drop in construction and manufacturing jobs in December. The decline in construction is likely at least partly a result of the severe winter storms that hit the country in mid-December, while the decline in manufacturing continues a trend that has been ongoing for most of the decade, he added.
According to the government?s statistics, the unemployment rate remained flat at 10.0 percent in December. The number of unemployed persons fell for the second consecutive month, the first time that has happened since the first quarter of 2007. The government's report can be accessed at http://www.bls.gov/news.release/empsit.nr0.htm.
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Cushman & Wakefield is the world's largest privately held commercial real estate services firm. Founded in 1917, it has 230 offices in 59 countries and 15,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies, offering a complete range of services within four primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, valuation services, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, and Consulting Services, including business and real estate consulting. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at www.cushmanwakefield.com.