In the midst of the “are we in a recession or not” debate…

And as earnings keep coming in to support one side or the other…

There’s one sector of our economy that’s proven resilient and perhaps even kept the whole house of cards from crumbling.

I’m talking about the job market.

Through everything, the job market has remained tight. And last Friday, we got the numbers for July, which showed we also hit two major recovery markers since the start of the pandemic two and a half years ago.

About that, The Wall Street Journal reported:

“U.S. employers added a robust 528,000 jobs last month, helping the economy recoup the 22 million positions lost early in the pandemic, as hirers clamored for workers despite a slowdown in economic growth.

“The unemployment rate dropped to 3.5% last month, a half-century low also seen just before the pandemic in early 2020, the Labor Department said Friday.”

“So what?” You might say. “That’s old news.”

True. But did you know that labor force participation rates, for their part, inched down from 62.2% in June to 62.1% in July? Even though we’ve recovered all the jobs we lost since the start of the pandemic, there are still 623,000 fewer workers in the labor force.

Why?

Everyone has a theory, of course. Frankly, there are too many to list here. But I do know that kind of economic oddity is keeping us on our toes in more ways than one.

More Non-REIT News to Know About 

In the last couple of weeks, I reported on how dollar stores are stocking up on produce items and manufacturers are altering products to meet more comfortable price points. But it seems the creativity in handling company costs hasn’t stopped there.

Karns Foods, a family-run supermarket chain out of Mechanicsburg, Pennsylvania (perhaps the most Pennsylvanian town name I’ve ever heard…) is starting to drop expensive and name-brand products from its shelves altogether in order to cater to cost-conscious consumers.

The 10-store chain is really doing what it can to ensure its prices are on par with what its patrons can afford. As such, it’s constantly comparing its items against bigger-box competitors like Walmart (WMT) and Giant to make sure it’s staying below standard prices.

“I see customers change their buying habits and worry about finances,” says Scott Karns, Karns CEO. His company, like many others, has been affected by higher labor competition, energy costs, and price increases from manufacturers.

With it being such a small corporation with competition coming from all sides, it’s difficult for businesses like Karns to compete. But, since there’s no way to avoid the tough going, this grocer clearly isn’t ready to give up.

Here’s hoping the best for him and his scrappy company!

The World According to REITs 

Kilroy Realty Corporation (KRC) is a West Coast real estate investment trust (REIT) that’s worth a second glance. This leading U.S. landlord and developer has earned global recognition for its building operations, innovation, and architecture.

As of last month, Kilroy’s portfolio totaled approximately 15.8 million square feet of office and life-science space – which was 91.4% occupied and 93.7% leased. It also holds more than 1,000 residential units in southern California, with a quarterly average occupancy of 93.7%.

For many companies, that geographical placement is a bummer. But not so much for Kilroy. It grew revenue by approximately 20% to $271.2 million last quarter.

That easily makes it one of the strongest revenue drivers in the industry.

It also signed over 249,000 square feet of new and renewing leases – including approximately 26,000 square feet in its development portfolio. These truly impressive growth numbers have allowed Kilroy to approve a cash dividend of $0.52 per share.

With so much growth even now with all things considered… I think it’s safe to say that Kilroy is truly killing it.

Author’s Note: If you do determine this stock is right for you, make sure to purchase it at a smart entry point. Even the best of companies can burn you badly if you buy in at inflated prices.

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