Monday, August 12, 2013
Job Market Holding Back Housing Market
The housing market is boosting the job market however, the job market is not reciprocating. The rising home sales has successfully boosted the residential construction employment rate by 4.5% from last years figure. Compared to the national employment growth rate of 1.7%, the residential construction employment rate is significantly higher. Jed Kolko, chief economist at Trulia, has states that the unemployment rate is holding back demand for housing. Kolko specifically focused on the 25-34 year-olds, stating that only 75% of that population group is employed because of the continuously weak job market.
“Job growth remains sluggish for young adults — who are key for household formation — and job growth is lagging in the “clobbered metros” hit hardest in the housing bust. That means the job market isn’t improving enough to give a strong boost to housing demand.”
The group stated above (25-34 year-olds) is crucial for the housing recovery because they are the first-time home buyers who need to be entering the market right now with the purchase of a home. However, it continues to be a struggle for this age group to gain any real momentum in their job security and acquire any potential to save money towards the future. Is it the government regulations and complicated tax structure that is holding them back? Is it the fact that we are still recovering from an economic collapse? Or, is it simply that the NEW generation of working class in this country is focused more on spending and partying, rather than woking and saving? Whatever the reason may be, something needs to change and we need to find a way to boost the job market and create more opportunities for job growth so people can earn the money they need, rather than figuring out more ways to hand out more free money.