By Gary D. Burnison
With new homes sales steadily ticking up, and an improved annualized gross domestic product (GDP) growth rate, one would think that employment would improve vastly and be better than the 7.8 percent we have today. But, it is not, and don’t expect it to be in the near future – here is why.
Here’s a fact: According to the National Association of Home Builders, each new home creates an average of 3 jobs for a year and $90,000 in taxes. But, you can forget the past history that as home sales rose, employment was sure to improve. In the latest housing bubble that peaked in 2006, the unemployment rate was below 5 percent. The GDP annual growth rate was 2.7 percent. But, in 2013, in other business sectors, we are cutting more jobs than home sales can generate.
Growth is happening
So, this month, while it has been reported that U.S. homebuilders broke the 1 million mark for seasonally adjusted annual rate of new construction in March 2013, it is still not enough. It was theRead More »from The New Normal?: GDP and Housing Up, Job Growth Tamped Down