Dive Brief:

• The construction industry created 29,000 jobs in February, yet home sales are sluggish and inventory remains low.

• Fannie Mae Chief Economist Doug Duncan said in a statement Friday that the “disconnect between the strong labor market and lackluster housing activity” is further magnified by an upcoming consumer survey that will show confidence in the housing market has barely inched upward.

• For job gains to stimulate home sales, they first have to translate into income growth, Duncan said. “We believe it likely will, [and] a stronger housing recovery will follow,” he said.

Dive Insight:

The Bureau of Labor Statistics jobs report on Friday showed that construction was among a handful of industries with job gains for the month, spiking overall employment gains by 295,000 positions. Other industries reporting job gains were food services, bars, healthcare, transportation and warehousing.

In addition, unemployment in construction fell to an eight-year low of 10.6%, according to an analysis of the data by Associated General Contractors of America.