Job Growth is Coming (according to Brian Wesbury)

Earlier this month our favorite economist, Brian Wesbury from First Trust Advisors, predicted that the U.S. economy would add 300,000 jobs in March. While this may seem unbelievable given the poor performance of the economy during the past 18 months, he does make a pretty compelling case. He points out that even without the hundreds of thousands of workers being hired by the U.S. Census Department, we are still poised to add significant jobs this month and for months going forward.

We have been saying for over 18 months that the housing market WILL NOT improve until we have significant job growth. With the Chicago area median price at five year lows, interest still at or below 5 percent and actual job growth (yes, even in Chicago), we will finally see the housing market begin to recover in the second half of 2010.

To see Brian's job growth video, please click here.

Jobs or No Jobs?

This week there were two news stories about Chicago’s employment picture that made the headlines. One announced the worst unemployment numbers for Chicago in years, 11.6 percent in January, up from 10.6 percent in December. The second news story, on the same day, forecasted an uptick in jobs in Chicago Q2 this year, according to a survey by employment services firm Manpower, Inc.

Unanimously both articles stated that the pace of layoffs is easing, and Chicago actually added 26,000 jobs in January, the first increase in almost two years.

Some additional positive news for our market; “Focused on job creation, leaders in biotechnology and life sciences will convene in Chicago this spring to evaluate the role of biotechnology parks in the economic recovery. The Association of University Research Parks’ (AURP) BioParks 2010 will bring together executives from research and science parks around the world to learn the latest on building communities of biotechnology innovation.” Hopefully the mayor and the convention bosses found a way to give AURP a good deal on their convention, and we suggest some tax incentives to bring their new biotech parks to our suburbs.

Also, Ford Motor Company recently announced that it will be adding a second shift to the Chicago Assembly Plant, creating 1,200 new jobs on the south side of Chicago.

These are encouraging and welcome signs for a decimated job market.