The slowing realty market in the US has already started leading to a slowdown in the jobs market. According to a new report, almost 40% of new jobs created in the last four years were due to the booming realty markets. The year 2005 ended with a record 9.8% of total jobs in the realty sector.
With realty sales declining considerably in the last five months, the pressures are beginning to show. Washington Mutual has reportedly closed 10 mortgage processing centres and fired 2500 employees. Another large company, Ameriquest has reduced its workforce by 1500. Home sales are expected to shrink by 8% this year after their spectacular growth in 2005. Jobs in fields related to housing are also going to face the brunt. These include appraisers, real estate brokers, mortgage brokers and home construction workers, home insurance agents amongst others. This could send shock waves through the job market and the economy.
The realty sector boom had attracted a large number of people from diverse professions like investment banking, marketing, hotels and construction. Now, with home sales on the decline, that trend is set to reverse.
Given the fact that the realty sector was contributing substantially to total employment, its tapering growth does not bode well for consumer spending, which is a driving force for economic growth in the US. It is imperative that other sectors are able to absorb people who are loosing employment opportunities in the realty sector in order to maintain the nation’s consumer spending boom.
If your profession is related to the realty business, you must have already experienced the ensuing sluggishness. It is best that you start to seek involvement in other sectors and not land yourself in trouble.
To read more about this issue and sectors that are likely to absorb some of these people, click here.
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