Saturday, March 6, 2010

Bad News if you are in the Construction Business

The chart below depicts the anticipated change in jobs in the construction business projected for the year 2010. I used this chart because building may be on of the indicators that will show true recovery.  Click here to go to the web site for the full interactive chart.  You can select any sector or state.  I have bookmarked this for future reference, pretty neat setup.

This bubble was in the housing sector and there is and will remain plenty of inventory on the market for years to come in my opinion.  Foreclosures may slow but there are still many re-sets on variable rate notes upcoming.  In addition there is still noise in the commercial sector.

It is my opinion also that the key to our recovery can be found in household spending.  This whole cycle is like a cancer eating the economy from the inside now and government throwing money into these stimulus programs is far to little and simply a waste which will only prolong the situation and further burden future generations.

I notice as I go about daily life that places are thin in customers, but the 30 somethings are still going on as nothing has happened.  I have been making notes on places I go and conditions I see just for my own curiosity.  Places like the grocery, Home Depot and Walmart etc. The depth of unemployment and underemployment when considered together seems to me to be more severe than government numbers indicate.  At least here in Nevada the construction industry which once drove the economy is in a poor state.

The projections on the interactive chart I referenced look really good from what I see, but I think it far too optimistic.  We have yet to really see much talk about the small towns across America who have lost small to intermediate industry which served as lifeblood of the town.  Many are just one plant closing away from rolling up the streets.

Job loss affects all of us because it leads to more job loss and fear of job loss causes households to hold back on spending which itself serves to increase job loss.  Truly a sinister thing.

Watch this short video capture to really get a feel for the growth of this unemployment cancer.  It is the work of a gal named Latoya Egwuekwe and the full screen version can be viewed here


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