-October 26,2022-
Low jobless rate here.
With all the jitters over the economy, you can’t complain about the local unemployment picture. Kings County just recorded its second lowest jobless rate ever.The unemployment rate in Kings County was 5.8 percent in September 2022, down from a revised 6.3 percent in August 2022, and below the year-ago estimate of 7.8 percent. It was 5.7% in May.Since 2012 – this year has been lowest.Double digit jobless numbers had been the rule over the past decade. Non-farm jobs are up 1000 year over year and farm jobs are up 200 from September 2021. Kings County’s labor force is up while those not working have dropped from 4400 to 3200.
Statewide there is a chronic labor market shortage, analysts say. California’s labor supply fell by 57,700 in September, and since February 2020, the state’s labor force has fallen by 246,000 workers, a 1.3% decline.
Faraday Future cuts employee wages temporarily
Faraday Future is cutting all employee salaries by 25% next month in an effort to preserve cash as the startup seeks new capital needed to launch its first electric vehicle, says Bloomberg. Employees instead will get stock.The move they say is temporary. The car maker has been promising to launch its new FF91 before year’s end, made in Hanford. About a week ago the company announced the resignation of interim CFO Becky Roof, effective immediately.
Gasoline prices head lower
Kings County gas prices have dropped 40 cents in the past week, says AAA. As of Oct 26 the lowest price for gas in Kings County was $4.54 at Fastrip in Lemoore. California’s average is down to $5.67 -27 cents lower than a week ago. Gov Newsom allowed refiners to go to winter blend early -helping to bring the price down in the state. Newsom complained this week that according to Valero’s Q3 financial report, the oil company made $2.82 billion from July to September, which is up from $463 million a year ago – an increase of more than 500%.
AAA says the national average pump price fell nine cents over the past week to hit $3.79. It has dropped daily since October 11, primarily due to lower oil prices and fewer drivers than usual fueling up.Gasoline demand remains nearly 1 million bbl lower than this date last year. If demand remains low and oil prices don’t spike, pump prices will likely keep falling.
Rising interest rates depress September home sales and prices
Across California, existing single-family home sales totaled 305,680 in September, down 2.5 percent from August and down 30.2 percent from September 2021.The information is according to the California Association of Realtors. Statewide, the median home price was $821,680 – down 2.1 percent from August and up 1.6 percent from September 2021.Rising interest rates have pushed home sales down for 15 straight months on a year-over-year basis. In September it was the second time in the last three months that sales dropped more than 30 percent from the year-ago level.The 30 -year fixed rate average was 6.11 percent in September, says Freddie Mac.
In Kings County the trend was better as the median price was $342,500 compared to $321,00 the month before and $320,000 in September 2021. Fresno County’s median rose as well but Tulare and Kern’s median fell month over month.
As for sales, King was down 8.9%, Tulare sales fell 12.9% compared to a year earlier. Fresno sales improved by 1.3%year over year.
Nationwide trends
Nationwide, home sales and listings in September both slumped the most on record with the exception of the early months of the pandemic as rapidly rising mortgage rates prompted both buyers and sellers to stay put, according to a new report from Redfin.The number of homes sold dropped 25% year over year while new listings fell 22%—the largest declines since May 2020 and April 2020, respectively, when the onset of the pandemic brought the housing market to a near halt.
“The U.S. housing market is at another standstill, but the driving forces are completely different from those that triggered the standstill at the start of the pandemic,” said Redfin Economics Research Lead Chen Zhao. “This time, demand is slumping due to surging mortgage rates, but prices are being propped up by inflation and a drop in the number of people putting their homes up for sale. Many Americans are staying put because they already relocated and scored a rock-bottom mortgage rate during the pandemic, so they have little incentive to move today.”