Despite recent improvement in the job market, Federal Reserve Chairman Ben Bernanke says that while long-term growth in vital to the housing market's recovery, he is unsure it the current rate of growth can be sustained.
Most recently, the private employment sector was reported to have added an average of 250,000 positions for a three-month period ending February.
"We cannot yet be sure that the recent pace of improvement in the labor market will be sustained," Bernanke said at a conference in Washington, D.C. "If structural factors are the predominant explanation for the increase in long-term unemployment, it will become even more important to take the steps needed to ensure that workers are able to obtain the skills needed to meet the demands of our rapidly changing economy."
Improvements in the job market may give prospective borrowers more confidence when buying a home, as the source of income will provide safety and soundness to make the investment.
Meanwhile, Bernanke called on further policy changes to be implemented in the job market to speed up economic improvement. At this time, however, he noted it is unclear whether long-term unemployment is a result of lack of demand from employers or a broader structural issue.