Latest news with #FirstAmericanProperties
Associated Press
03-07-2025
- Business
- Associated Press
Michael Eisenga, CEO of First American Properties, Issues Statement on June Jobs Report: 'Don't Be Fooled by the Headline'
COLUMBUS, Wis., July 03, 2025 (GLOBE NEWSWIRE) -- In response to today's release of the June 2025 employment report, Michael Eisenga, CEO of First American Properties, cautioned policymakers and investors against overconfidence in the labor market's apparent stability. While the U.S. economy added 147,000 jobs in June exceeding expectations, Eisenga emphasized that this number masks troubling undercurrents in the workforce. This report also is an interesting contrast to the ADP report which represents a more real time actual payroll database. 'On the surface, today's report looks encouraging,' said Eisenga. 'But dig deeper, and you'll find clear evidence of a cooling private-sector engine, sluggish hiring appetite, and shrinking workforce participation. We should be sounding the alarm, not celebrate.' This is especially the case when contrasting today's report with yesterday's ADP report, both can't be correct. According to ADP Research, private sector payrolls fell by 33,000 in June, following a revised gain of only 29,000 in May. Additionally, service providers, which have driven much of the post-pandemic recovery, cut 66,000 jobs, particularly in professional services, and health care. Out of the 147,00 jobs created 73,000 of them were government related jobs. Small and mid-sized businesses are reducing headcounts, suggesting tight margins and increased caution in future hiring. According to ADP, average payroll growth has slowed dramatically to just 18,700 jobs for the past 3 months up to May. Challenger, Gray & Christmas reports that hiring plans in June were the second worst since 2004. 'Businesses are not panicking, but they are clearly becoming more cautious,' Eisenga said. 'Layoffs aren't skyrocketing, but employers are holding back on replacements and new hires. That tells you confidence is slipping.' Labor force exits are also accelerating. The U.S. labor force shrank by 625,000 in May and another 130,000 in June, meaning between May and June, a combined 755,000 Americans exited the labor force, many likely due to retirement or more concerning exhausting their unemployment benefits. This mass exodus is not reflected in the drop in the unemployment rate to 4.1%, down from 4.2%. Accordingly, the unemployment rate did not drop because more people found jobs, but because fewer people are showing up on the stats due to the government's definition of dropping out of the workforce. 'A lower unemployment rate driven by workforce exits is not progress, it's smoke and mirrors,' Eisenga warned. 'We're seeing clear signs of job-hunting taking more time and a weakening path for consumer spending and growth.' The number of people currently receiving unemployment benefits stands at 1.964,000, just shy of the 2-million mark. Hiring breadth is narrowing, and early regional employment data shows softening trends. Eisenga echoed recent calls from economists and Federal Reserve officials urging a pivot in Fed policy, including potential interest rate cuts as early as July. 'The Fed cannot afford to ignore these warning signs,' Eisenga said. 'The revisions and participation trends demand action. A proactive stance by the FED is long overdue.' Eisenga concluded by urging business leaders, investors, and policymakers not to take headline numbers at face value: 'The real story is beneath the surface. If we wait for the next round of downward revisions to confirm what we already see forming, it will be too late.' Media Contact: Michael S. Eisenga, CEO First American Properties [email protected] (920) 350-5754
Yahoo
13-05-2025
- Business
- Yahoo
Economic Indicators and Federal Reserve Policy Comments by Michael Eisenga CEO First American Properties
COLUMBUS, Wis., May 13, 2025 (GLOBE NEWSWIRE) -- In light of this morning's Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics (BLS), Michael Eisenga, CEO of First American Properties, released the following statement addressing concerns about the current economic trajectory and the Federal Reserve's continued policy stance: 'The data is clear: economic pressure is mounting, and yet the Federal Reserve appears increasingly disconnected from the reality businesses and households are facing. In the first quarter alone, large company bankruptcies were up 7% year-over-year, and 8 more major corporate bankruptcies have been filed in May as of the 8th. That's a warning signal the Fed can't afford to ignore. Today's CPI report for April shows inflation is softening: headline CPI rose just 2.3% year-over-year, down from 2.4% in March, and came in below expectations. Gas, fuel, and food prices are all declining — evidence that inflation is, in fact, cooling and tracking toward the Fed's target. Still, core CPI — which excludes food and energy — came in at 2.8% year-over-year, up from 2.4% in March. While that uptick raises concern, it's critical to understand what's behind the numbers. Shelter accounted for more than half of the monthly increase, and energy costs also ticked up. Yet, many businesses report they cannot raise prices due to consumer resistance. That's not inflationary — that's demand suppression. The idea that rising input costs automatically result in higher consumer prices is flawed. Higher input prices don't translate to inflation when customers can't afford to pay more. The reality is: margins are being squeezed, and growth is slowing. On the labor front, the BLS recently revised down job creation by 800,000 for the 12-month period ending March 31, 2025 — and that accounts for only half of the full-year revisions. It's likely we'll see net-negative job creation in the coming months. These downward revisions are a significant red flag that calls into question the strength of the labor market the Fed is citing. As a business leader, I urge policymakers to take a more nuanced view of the data. The cracks in the foundation are becoming harder to ignore — and continued tightening or inaction risks turning a slowdown into something far worse.' First American Properties remains committed to responsible investment and transparent economic dialogue in the real estate and business communities. About First American PropertiesFirst American Properties is a Midwest-based real estate investment and development firm focused on commercial and residential properties across key regional markets. Led by CEO Michael Eisenga, the firm brings strategic insight and a commitment to long-term value in all aspects of property development and management. For press inquiries, please contact:meisenga@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
