The latest jobs report is in, and at first glance, the labor market looks stable.

But according to Zillow's senior economist, there are some cracks beginning to show.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

According to the Bureau of Labor Statistics, the U.S. added 178,000 jobs in March.

The unemployment rate held at 4.3%.

Job gains were led by health care, construction, and transportation.

Meanwhile, federal government employment continued to decline.

On the surface, this suggests the job market

is still growing, even in a high interest rate environment. But when we look closer, there are

signs of slowing. Job gains in prior months were revised lower, and overall hiring has been

modest over the past year. Wage growth is also cooling. Average hourly earnings are up

3.5% year over year. That's a bit slower than the month before. In addition, we're seeing

more people on the sidelines. About 6 million people say they want a job, but aren't actively

looking. And discouraged workers, those who have stopped searching, have risen to 510,000. Long-term

unemployment is also increasing. For real estate investors, one area to watch is construction.

That sector added 26,000 jobs in March. That suggests building is still moving forward, but over the

past year, construction job growth has been flat. That suggests building is still moving forward, but over the past year, construction

job growth has been flat. That could mean a slower pipeline of new housing supply ahead.

In a LinkedIn post, Zillow's senior economist Orfe de Vungay says the headline numbers don't tell

the full story. He wrote, quote, the jobs report looked fine and

wasn't. He points out that over the past three months, job growth has averaged just 68,000 jobs.

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