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U.S. NEWS Friday 9 June 2017

US household wealth ticks up 1.4 percent to $94.8 trillion

By CHRIS S. RUGABER Yet just 10 percent of the
AP Economics Writer U.S. population owns 80
WASHINGTON (AP) — percent of stock market
Buoyed by higher stock wealth. Meanwhile, middle
prices, Americans’ house- income households derive
hold net worth rose 1.4 most of their wealth from
percent to $94.8 trillion in their homes. Nationwide,
the first three months of this home prices didn’t fully re-
year, a trend that could cover from the downturn
support future spending. until last September.
U.S. stock and mutual fund Americans typically spend
portfolios jumped $1.3 tril- a bit more when their home
lion in value in the January- values and other wealth
March quarter, the Fed- rises, which economists
eral Reserve said Thursday. call “the wealth effect.”
Home values increased Yet there are signs that
$499 billion. the post-recession buildup
Total household wealth in wealth hasn’t led to as
includes checking and much spending as it may
savings accounts, and have in the past.
subtracts mortgages and For example, U.S. consum-
other debt. Unlike some ers haven’t increased their
other economic measures, spending since the reces-
household wealth has fully Pedestrians walk past the New York Stock Exchange. On Thursday, June 8, 2017, the Federal Re- sion at the same pace as
recovered from the Great serve reported on household wealth for the January-March quarter. they did before. Consumer
Recession and gone far (AP Photo/Seth Wenig) spending has increased at
beyond pre-recession lev- more slowly than it was be- The figures aren’t adjusted recovery. just a 2.3 percent annual
els. The proportion of Amer- fore the downturn. for inflation. Record-high stock prices pace since 2009, com-
ican adults with jobs, for But in the nearly eight years That disparity between are the primary driver of pared with 3.4 percent in
example, remains nearly since the recession ended, household wealth — which greater household wealth. the three decades before
three percentage points U.S. household net worth is highly concentrated — The Dow Jones industrial the downturn.
below where it stood in has soared past its pre-re- leaping higher while jobs average has more than tri- One reason for the sluggish
December 2007, when the cession level of $66.5 trillion. and income growth lag re- pled from its recession-era spending is that Americans
recession began. And av- It fell to $56 trillion in 2008 flects some of the unequal low of 6,547 to 21,174 on are borrowing less for im-
erage hourly pay is rising before slowly recovering. aspects of the economy’s Wednesday. mediate consumption.
Claims for US jobless benefits fall by 10,000 to 245,000

By PAUL WISEMAN since 1970. Overall, nearly an average 187,000 a employment growth re- ing down,” Jim O’Sullivan,
AP Economics Writer 1.92 million people were month for all of 2016. maining more than strong chief U.S. economist at
WASHINGTON (AP) — Few- collecting unemployment “Claims remain low, con- enough to keep the un- High Frequency Econom-
er Americans applied for checks, down nearly 10 sistent with the trend in employment rate trend- ics, said in a research note.
unemployment benefits percent from a year ago.
last week as most U.S. work- The four-week average
ers continue to enjoy job number of Americans re-
security. ceiving jobless aid was
THE NUMBERS: The Labor 1.91 million, lowest since
Department said Thursday January 1974. KEY DRIV-
that claims for jobless aid ERS: The job market is
fell by 10,000 to a season- healthy, though hiring has
ally adjusted 245,000 last slowed recently — partly
week. The less-volatile, because employers can’t
four-week average rose by find workers when the un-
2,250 to 242,000. employment rate is at a 16-
THE TAKEAWAY: Applica- year low 4.3 percent. The
tions for unemployment economy has generated
benefits are a proxy for lay- 162,000 jobs a month so
offs. They’ve come in be- far this year — up from an
low 300,000, a historically average 157,000 a month
low figure, for 118 straight from January through May
weeks, longest such streak last year, but down from