Housing Bubble
September Employment Numbers Confirm Role Of Mortgage Industry In Supporting U.S. Economy
The U.S Department of Labor last Friday released the most recent employment statistics, compiled by the Bureau of Labor Statistics, showing that mortgage industry employment has increased 27 percent in the last two years, adding 81,000 jobs to the U.S. economy since January 2001.
There were 381,000 people employed by mortgage banking and broker companies in September 2002 – a 17 percent increase since January, 2002. The year-over-year comparison shows a 13 percent increase, with more than 44,000 jobs added in 2002.
The September employment report shows a net increase of 6,000 employees since August, confirming the role that the real estate finance industry continues to play in maintaining and supporting the U.S. economy.
“The mortgage finance industry is critical to the growth of the U.S. economy, particularly in these challenging economic times,” stated Doug Duncan, chief economist of the Mortgage Bankers Association of America (MBA). “The employment support created by the mortgage banking industry, coupled with the refinance boom and record-setting home purchases, underscores the industry’s impact on the economy.”
“Of course we attribute the strong housing market activity and employment growth to record low interest rates. Should interest rates rise, we can expect that some of these employment figures will slow or drop off because of reduced mortgage volumes. However, a slowdown in the industry’s employment will be offset by the fact that rising interest rates reflect a strengthening economic recovery – increasing job growth opportunities across broad sectors of the economy,” said Duncan.
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