They're Back: Nevada, Arizona, Florida, And California Now Have The Hottest Job Markets In The Country

Further proof that the housing rebound is the most bullish trend in America (and possibly the world) at this precise moment.

From Goldman’s Jan Hatzius: The housing bust states are now the hottest job creators.

To wit:


Photo: Goldman Sachs

What’s key about the above chart isn’t just that the housing bust states are coming back after underperforming during the bust, but that they moved in unison with the regular states for a while, and are now breaking back out of the pack.

And here’s another one showing a similar idea.


Photo: Goldman Sachs

Says Hatzius:

What are the broader implications of our findings? While the overall pace of labour market improvement remains disappointing, the “skew” toward faster improvement in former housing bust areas is a healthy development. The level of the unemployment rate is still 2.4 percentage points higher in these areas than elsewhere. Assuming that at least part of this gap is due to cyclical rather than structural factors, a given amount of aggregate US labour market improvement that is skewed toward high-unemployment areas where prices and wages remain depressed can potentially proceed much further than one that is skewed toward low-unemployment areas that are already closer to supply-side bottlenecks and inflationary pressure.

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