Housing related employment expected to decline

From the Mortgage Bankers Association:

Trends in Housing-Related Employment

During the housing boom years, the housing market was the engine for employment and economic growth. The jump in construction employment and other employment in housing-related industries helped to offset job losses in other industries in the early 2000s.

The lagged effects of the increases in the fed funds rate beginning in June 2004 started to have a negative impact on housing activity in late 2005 and on the labor market in 2006. The overall job gains slowed in 2006, due in large part to declining construction employment and slowing gains in other housing-related jobs. The on-going moderation of the housing market has sparked concerns that the slowdown could jeopardize the expansion in the labor markets and the overall economy.

The housing market contributed significantly to the economy over the past few years. Housing-related industries — both residential construction-related and residential sales-related — created 34,500 jobs a month, on average, during the housing boom in 2004 and 2005. Measures of housing activity have declined from their peaks around the summer of 2005 and the decline was more pronounced in mid 2006. Cooling construction activity has resulted in declining construction-related employment and weak growth in home sales-related employment last year.

As we expect housing starts and home sales to continue to moderate through most of this year, housing-related employment should continue to decline in line with weaker housing activities and moderately hold down overall job growth this year. We expect housing activity to recover gradually by the end of the year as thus housing-related employment should contribute to overall job gains in 2008.

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3 Responses to Housing related employment expected to decline

  1. Babytalk on Subprime Meltdown

    http://www.paperdinero.com/BNN.aspx?id=142

    Humorous babytalk segment on the subprime meltdown. Possibly the best indicator of why the U.S. housing market got into this predicament in the first place. Goo Goo Gaa Gaa!

    Originally aired on: 4/10/2007 on CNN

    Running Time: 6 minutes 26 seconds

  2. Comedian Jokes about Subprime!

    http://www.paperdinero.com/BNN.aspx?id=123

    Comedian Jokes about Subprime!

    Comedian Kathleen Madigan argues that lenders should not be bailed out by the government. The subprime slime may not have fully spilled over into the economy as of yet but it certainly has infected popular media.

    Originally aired on: 3/27/2007 on CNN

    Running Time: 1 minutes 33 seconds

  3. New Today! Paulson Now Sees “Major Housing Correction”

    http://www.paperdinero.com/BNN.aspx?id=194

    Excerpt features Treasury Secretary Henry Paulson discussing his assessment of the housing decline and his outlook for the future. Paulson suggests that the US has experienced a “major” housing correction that was inevitable after years of historic gains. “That correction has now been significant, we think it is near the bottom, it will take a while to work its way through the system.” Unfortunately, Paulson only reiterates the same guidance he offered last year prior to the housing market taking another major leg down.

    Originally aired on: 5/21/2007 on New Hour

    Running Time: 1 minutes 29 seconds

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