At the end of the third quarter, employment growth was 2.5%,down from 4.7% from a year earlier.

Even with the lower employment growth, the area shows a net gainof 5,600 jobs. At the same time, layoff continues at majoremployers such as Albertson's and Hewlett-Packard, while MicronElectronics has a hiring freeze, which is hindering employmentgrowth, according to the report.

Sales of affordable homes are up 22%, which is taking its tollon the apartment market.

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