The January jobs report was disappointing, could that hurt the housing market?

January jobs numbers from the Bureau of Labor Statistics released late last week showed a small 0.4% rise in employment. While the rise was lower than many experts had anticipated, it does represent a change in direction from December’s net job losses.

While the number of workers on temporary layoff dropped in January, there was little change in the 3.5 million Americans who have been laid off permanently. In addition, four million Americans are still long-term unemployed, jobless for 27 weeks or more. Industry experts and analysts largely agree that moderate jobs growth like this reflects just how driven the economic recovery is by the ongoing COVID-19 pandemic. The question now, as widespread vaccination efforts get underway, is whether we will see a steady and accelerating recovery through the remainder of the year, or if we will be plagued with small increases and decreases in unemployment until herd immunity is achieved.