Unemployment rate down to 10.2% in San Diego County. Some may consider this good news, for others it doesn’t help their employment status. Either way, the unemployment number in San Diego County dropped to 10.2% in September from 10.6% in August. In fact, it’s not just San Diego that’s registered a drop in unemployment rates – it’s the whole State of California with a 12.2% rating in September, decreasing from 12.3% in August.
Let’s try and see what this means. First, there are some economists who warned that it’s not such a good idea to put too much stock in these figures because they were sourced from a government-conducted telephone survey of households, which is generally, a less accurate way of getting the information. It’s more logical to rely on payroll numbers which are based on data coming from a broad sampling of employers. Others believe, however, that a drop (even something this small) is still a good sign because at least, there’s minor movement in the right direction. It is also very possible that this slight drop is an indication that massive layoffs are beginning to taper off and slow down.
However, even if unemployment rates are going down, it doesn’t necessarily mean that new jobs will be easy to find. Experts are even speculating that the slowdown in unemployment rates means that the once-jobless have now found part-time jobs or jobs that don’t involve payroll, like consulting jobs for instance. Some may even have opted out of being part of the workforce for the meantime, in their frustration from trying to find a job. Others may have decided to return to school or enrolled in training courses to boost their resumes once the job market picks up.
The retail and services sectors are primarily two of the segments in the employment market where there are new jobs being offered. Retailers are being positive about sales and intend on providing good service to their customers, hence the new hires.
What does this mean if you’re thinking of purchasing real estate? Real estate prices are often driven by unemployment rates. If we’ve reached the ceiling or close to it for unemployment then it is safe to say we are at the bottom or close to the bottom of the real estate market. Prices can only drop so much while unemployment rises. Once employment starts to stabilize, you will see the real estate market start to bounce back. It may not bounce back quickly but it will come back. Try to take advantage of the San Diego real estate market.