Napa Mortgage News

Happy Labor Day....Economic Numbers Fall Short

January 13th, 2017 2:08 PM by Dale DiGennaro

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To many Americans, Labor Day marks the end of the summer, a day off from work and school, and one last chance to relax. But Labor Day is much more than just a day off. It represents a very important victory for laborers everywhere. The holiday is a celebration of the social and economic achievements of American workers.

Fighting for Change

More than a century ago, workers were forced to deal with harsh conditions. They were paid very little, and they often worked 10- to 12-hour days. Men, women and even small children were forced to work even when they were sick.

Tired of long hours and dangerous conditions, workers began organizing themselves into labor unions. On top of fighting for higher pay and shorter workdays, they also fought for the rights of children. The workers wanted employers to place limits on the age of their workers so that small children were not overworked or hurt in factories.

Peter McGuire is often called the 'father' of Labor Day. He came up with the idea for the holiday in 1882.

Peter McGuire is often called the "father" of Labor Day. He came up with the idea for the holiday in 1882.
A Holiday for Workers

A New York City carpenter named PetecGuire is credited for coming up the idea for Labor Day. In 1872, after working many long hours under poorconditions, McGuire rallied 100,000 workers to go on strike. The workers marched through the streets of New York City, demanding a better work environment.

McGuire spent a decade fighting for worker's rights. In 1882, he proposed the idea to create a special holiday for workers. On Tuesday, September 5, 1882, more than 10,000 workers hit the streets of New York City for the first ever Labor Day parade. Two years later the celebration was moved to the first Monday in September. And in 1894, Congress passed a law making Labor Day a national holiday.

A Relaxing Celebration

Americans celebrated the first Labor Day holiday with a parade, picnics and fireworks. Today, many people hit the road to enjoy the last of their summer vacation. Others enjoy the long weekend with picnics, backyard barbecues or just rest and relaxation.

However you spend Labor Day, remember that the holiday is a time to pay tribute to the workers who have made America what it is today.

Economic Data Falls Short

The two most important economic reports released this week both fell short of expectations. Despite these results, mortgage rates ended the week with little change.

Friday's Employment report was mildly disappointing. Against a consensus forecast of 175,000, the economy added 151,000 jobs in August. Despite the slower pace in August, the economy has added an average of 232,000 over the last three months. The unemployment rate remained at 4.9%. Average hourly earnings, an indicator of wage growth, fell slightly short of expectations.

Another important indicator of economic activity also missed to the downside. The ISM national manufacturing index fell to 49.4, well below the consensus forecast, and the lowest level since January. Readings below 50 signal a contraction in the sector. The report suggests that manufacturers continue to face headwinds from a stronger dollar, economic weakness overseas, and reduced spending on machinery and other large equipment from U.S. businesses.

These two reports did little to settle the question of whether the Fed should raise the federal funds rate at its next meeting on September 24. According to futures markets, investors have assigned about a 25% chance of a rate hike at this month's meeting, just slightly lower than before the two reports.

Looking ahead, the most significant economic event likely will be Thursday's European Central Bank (ECB) meeting. The ECB announcement often has an impact on U.S. mortgage rates. It will be a light week for U.S. economic data. The ISM national services index will be released on Tuesday. The JOLTS report, which measures job openings and labor turnover rates, will come out on Wednesday. The Fed's Beige Book also will be released on Wednesday.

Posted in:Labor Day, Home Loans, Mortgage Rates and tagged: mortgage loans mortgage rates Labor Day Economy

Posted by Dale DiGennaro on January 13th, 2017 2:08 PM

Napa Mortgage News

Happy Labor Day....Economic Numbers Fall Short

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