SANTA ANA, CA--Bob Bach, (top right photo) Senior Vice President and Chief Economist,Grubb & Ellis Co., notes in his periodic market report:Additionally, September and October losses were revised downward by a combined 199,000.
The education and health services sector added 52,000 in November while government added 7,000 and natural resources and mining added 4,000. All other sectors lost jobs, with the largest loss coming in the professional and business services sector, where employers eliminated 136,
000 positions including 78,000 in temporary help services.
000 positions including 78,000 in temporary help services.The labor market began shrinking in January, but the losses through August were shallow compared with prior recessions, totaling 655,000 during that eight-month period.
Since September, however, losses have accelerated sharply, totaling 1.2 million during that three-month period, putting year-to-date losses at 1.9 million.
The acceleration in job losses since September is worrisome. The recession has entered its 12th month, already longer than the prior two recessions, but it appears to be growing in intensity. The prior two recessions in 1990-91 and 2001 both lasted for eight months.
The impact on commercial real estate is troubling. Job growth is the most important leading indicator of office space absorption, and it supports leasing activity for apartments, shopping centers and, to a lesser extent, industrial properties.
The acceleration in job losses since September is worrisome. The recession has entered its 12th month, already longer than the prior two recessions, but it appears to be growing in intensity. The prior two recessions in 1990-91 and 2001 both lasted for eight months.
The impact on commercial real estate is troubling. Job growth is the most important leading indicator of office space absorption, and it supports leasing activity for apartments, shopping centers and, to a lesser extent, industrial properties.
The recent acceleration in job losses capped by the massive loss in November indicates that leasing market fundamentals are poised to soften further. It is very 
likely that job losses will continue through most of 2009, meaning that tenant demand for commercial real estate, which lags the labor market, may not firm up until 2010.
For more information or to speak with Bob Bach, please contact Janice McDill, Vice President, Public & Investor Relations, at 312.698.6707 or via email at mailto:janice.mcdill@grubb-ellis.com
likely that job losses will continue through most of 2009, meaning that tenant demand for commercial real estate, which lags the labor market, may not firm up until 2010.For more information or to speak with Bob Bach, please contact Janice McDill, Vice President, Public & Investor Relations, at 312.698.6707 or via email at mailto:janice.mcdill@grubb-ellis.com
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