Mayfair Group: Temporary hiring soared non-farm payroll data by 500,000 jobs in May

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Published: 17th June 2010
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Mayfair Group: Temporary hiring soared non-farm payroll data by 500,000 jobs in May

The non- farm payroll data of May 2010 reached one of the highest in last twenty-six years and the major cause for increase in the number of jobs is temporary hiring for the census program. The analysts are waiting to see latest job reports and it is estimated that the non-farm payroll data will depict an increase in jobs by 500,000 in the month of May.

The new jobs will reduce the unemployment rate from 9.9 % in the last month to 9.8%.The non-farm payroll data has been steadily increasing in month-by-month data and in the month of April the increase was 290,000, which indicates U.S. economy is gradually coming out of recession. The improvement in jobless data also raised consumer confidence in retail and housing sectors.

Analysts' estimation for new jobs in May ranges from 130,000 to 220,000. Enhancement in jobs raises consumer spending and the trend ultimately contributes to improvement in the economic condition. The increased unemployment has forced the Federal Reserve to keep low interest rates and it is predicted the rates will be kept low for some more time.

New hiring

The increase in sales also indicates the companies will have to make new hiring to meet the new demands and consumer spending has been vital for economic growth. According to the estimation made by the Labor Department the gains in payroll varied from 220,000 to 750,000 and it is one of the biggest gains since September 1983 when payroll rose by 1.11 million.

In the month of May approximately 417,000 more workers were hired for the federal decennial population count program.

New hiring in private companies

Detroit based motor company Chrysler Group LLC will hire 1100 workers for the Detroit factory which is designed to produce Jeep Grand Cherokees. The company's website informed there will be more openings in near future for some more projects.

Connecticut-based General Electric plans to add more than 1300 employees in Michigan and more than 1400 positions will be filled by Lowe, which sells home improvement products.

Buying properties is cheaper than paying rents

Many home buyers have invested in properties to give it on rent. Many tenants are searching for deals in their regions to own a house. The cities which are facing greatest crisis due to foreclosures are best places to own rental properties.

Detroit has been in news for low cost foreclosure properties and it is attracting overseas investors for the cheap rental properties which are managed by local asset management firms in the city. Rents in Detroit can be in the range of $700 to $1200 for a 3-bed detached house and buyers are investing in ready -to -rent foreclosure properties in Detroit which can be bought in the price range of $40K to $50K through the real estate firms. Investors can fetch 25% of the investments from the first year's rent.

For more information log on to Detroit Property Investment,Mayfair Group or Mails us,,

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