WREN Report: Manufacturing Employment, Home Prices Continue Decline

October 5, 2008  by in UnCategorized   

By Home Furnishings Business in on October 2008 • The overall September unemployment rate remained at 6.1 percent, still the highest rate in five years, according to the U.S. Bureau of Labor Statistics (BLS). Non-farm employment declined by 159,000 in September.

Overall manufacturing employment dipped by 51,000, or 0.4 percent, in September, with manufacturing employment in the home furnishings sector down 5,300 jobs, or 1.1 percent measured against August figures. Compared with September of 2007, total manufacturing employment declined by 442,000 jobs or 3.2 percent, and home furnishings manufacturing lost 47,100 jobs or 5.3 percent.

On the retail side of the home furnishings industry, employment slipped 0.4 percent, or 2,300 jobs, in September versus August, to 565,000 jobs. That’s a decline of 1.9 percent from September of last year, based on BLS records. September’s overall retail trade employment declined 2.3 percent versus August and fell 11.2 percent compared with September 2007 figures.

• In addition to disappointing housing statistics, national home sale prices continue to fall. According to the Standard & Poor’s/Case-Shiller Home Price Index, which tracks changes in the value of the residential real estate market, the index of home prices in the second quarter of 2008 dropped 2.3 percent from the first quarter to an Index value of 155.2. The base for the Index is January 2000.

Compared with the Index for the second quarter of 2007, home prices fell 15.4 percent. The Index is at its lowest point since the second quarter of 2004.

Weekly Review of Economic News (WREN) reports are summaries of recently-released economic statistical data that affect the home furnishings industry. WREN reports are compiled by HFB Research Editor Janice Chamberlain.