US jobs and housing market affects the economy

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US jobs and housing market affects the economy
The United States economy is influenced by many factors such as business spending, inflation, housing, employment, and the GDP. These factors affect the economy of the united states directly as they have a more significant influence on the economy. It is therefore essential to note that the united states of America depend on some of these factors in improving their economy. They also contribute to the rise and fall of the economy. This paper is thus dedicated to research on the US job market, and house market affects the economy. It is divided into segments discussing the two elements play important roles to the consumers and the contrast/ progress they had after recession (“United States Economy – GDP, Inflation, CPI And Interest Rate”).
Dynamics of job market in the USA
The united states job market has been compromised for a very long time. The outlook of the economy highly depends on the job market that must be competitive for the economy to rise and to be boosted significantly. Some of the reasons behind the job market in the united states include unemployment rates that have been high in the united states. However, the levels of unemployment have been reducing; for example, it has diminished from 4.9-4.6 in the last two years which is a significant way to recognize the rise of employment opportunities in the United States. Many new jobs are introduced in the job market at given periods of time for example in November last year 228, 000 new jobs were added thus reducing the rates of unemployment significantly (“Forbes Welcome”).

Another factor that affects the outlook for employment is the fact that there is a slow wage rise. Many Americans experience slow growth due to a minimal increase in wages every year. The salaries have remained constant for a very long time in the economy thus preventing some of the citizens to develop themselves by either saving for investments. Also, there is also a large number of Americans who do not work fulltime. There are however many Americans wo seek the full- time jobs because of the need to get higher pay (“Forbes Welcome”). Majority of the employed category prefer the part-time jobs where they work only during the working hours or in contracts. Full-time jobs affect the job market as it keeps it more alive and progressive as many people in the states would be striving to make ends meet by full-time employment.
Another factor is that most of the unemployed category of the united states comprised of the blacks and the young Americans. There is a lot of racial discrimination in the united states which is affecting the blacks significantly. Th young Americans are also marginalized in perception by other employment companies due to lack of enough skills to get employed. It is, therefore, an issue that affects the youths which should comprise of the prime working age which is between 25 and 54. The unemployment rate of the whites is 3.6% which is contrary to the black or Africans which is 7.3%. The tens also have an unemployment rate of 15.6 percent which is an alarming rate (“How Is Ageing Affecting US Unemployment Rates?”).
There are also a high number of Americans outside the workforce which is a major concern that is supposed to be looked in to with a lot of concern. About 62.7% of the Americans are obligated to seek employment whereas the rest are out of the workforce. It indicates that the percentage of the unemployed people is very high and could aft the economy significantly (Rushe).
Dynamics of house market in the united states
House market was greatly devastated in late 2007 during the recession which affected the economy significantly. The slowdown of the economy also affected the housing market where the cost of residence in the united states was very cheap. It then regained back its health form the year 2007 onwards where the demand for the houses became high due to an increase in population. The price of homes also hiked up, and the cost of living now is very high in the united states of America. With the high rates of unemployment, few people were able to afford the houses in the united states which were more expensive and costly. Some of the dynamics of housing market include low inventory which has remained the force behind the housing market stats (Dutta).
Another case is the high demand for houses which will eventually push the prices up in the US. The higher the need for the homes in the states when higher they will be proceeding due to limited supply. It has also been reported that there are high rates of land buying and house construction by investors who will benefit in the economy as they will rent out their houses at very high costs.
Another dynamic is that affordable houses in the united states will be exclusive as the high population indicating high demand would suppress the available ones leaving none for occupation.
Impact of Job market to consumers
Jobs in the united states affect many people in the country as a large number of the population consists of the employed. There are some aspects of the job market that affect the consumers. The effects could be either positive e or negative depending on the dynamics and how it affects the economy.
One of them is unemployment rates. There have been many cases of high rates of unemployment affecting the economy in the united states. High rates of unemployment depict some people remaining jobless thus they could not have sources of income thus affecting the economy. However, some few segments are affected by unemployment or lack of employment opportunities. One of them is the teens who are not able to work in companies or organizations because of their small ages. Most of the teens are also still studying in us thus not giving a chance to get employed. Another factor is the retired people whose numbers are increasing highly. In the united states, the retired old people are not including in the workforce but are left to get a pension of their employment period which is not also regular (Kitroeff).
Unemployment rates thus affect the consumers who are the rest of the population which could be depending on the employment opportunities to earn a living. In the united states, therefore, unemployed people are subjected to the more economic crisis which affects many aspects of their lives. For example, high rates of unemployment would lead to low economic growth since there would be many people depending on someone or the government for support because they are not employed. Unemployment rates could also lead to a rise of social problems that might occur in a country casing more economic problem.
Another aspect of the job market that affects the consumers include a low increase in wages. Wages take a lot of time to increase which is always evaluated in some years. The employed people more so the middle earning people suffer a lot in an increase of wages which dine slowly on limitations. For example, the salaries of the working people have increased by 2.8% over the last many years. It, therefore, places some of the citizens in situations whereby they cannot grow themselves economically. Most of the lack decent money for saving because of the low increase in wages, increase in payments do not occur, but the cost of living increases with time. The cost of living, therefore, suppress the consumers who will be having much need of their income to live the lives they intend to but would be limited due to low levels of income which are also stagnant. However much the cost of living might be high the united states, it would be of great importance to the consumers of their income would be increasing steadily and significantly.
Also, unemployment also considers different factor such as race and age. In the job market in the united states, some companies limit the employment of blacks, the elderly and the young. The blacks, therefore, appear to dominate the highest number of unemployed people in the united states. There is, therefore, a lot of racial discrimination in the employment sector that affects a vast population.
In the united states also, the job market comprises of jobs that have significant qualifications to attain. For example, education qualifications such as degree have affected a large number of people who seek employment. For instance, in America, only a third of the citizens gave degree certificates. It, therefore, implies that many of the united states citizens do not qualify for most of the jobs advertised inquiring of the same qualification. The employment rates would be therefore low as expected.
How housing market affect consumers
The demand for homes in the united states has been so high making the real estate cost to increase steadily over the years. The United States citizens, therefore, face many financial challenges when getting to deal with rentals and the cost of living in the country. The cost of living is very high, and there are a lot of competitions on houses in the states. This is caused by high demand which was induced after the recession period in 2007. Also, the fall of house prices profoundly contributed to the recession in 2007 which led to a financial crisis in the country.
The housing market this also led to many restrictions so the bank in on issuance which is made so strict to no be issued to risky buyers. Some buyers deed loans but do not have enough mortgage which is required by the banks for loan issuance. The consumers have therefore resolved to buy of houses which they can mortgage to the banks for loans. Moreover, the effect has only favored the wealthy who can purchase houses in the states. Most of the population who consist of the middle class has been affected (“When Did the Real Estate Bubble Burst?”).
The high rates of home purchase have a little impact on the GDP which could either be a production or a contraction depending on how it affects it. It can lead to rising or decline in the GDP of a particular country. Hr. The United States has therefore been affected by the acts of people buying houses massively due to various factors such as a mode to seek mortgage loans. Moreover, residential investment comprises 5% of the national GDP which is significantly high. The economy, therefore, advised the conduction more housing in the housing market to boost the economy significantly. The economy can, therefore, increase when the supply of the construction of the houses in the united states has increased. There would be more sales and rent of the houses because the demand is also high and is at a very high rise. The cost of living in the United States is high, and the most advantaged people are the house owners who rent their houses, sell or live in them to avoid the much cost of living (Mian, 54).
There are also some demand factors that affect the housing market in the economy. One of the elements is employment which implies the ability of people to purchase or rent the rowhouses, the income generation impacts on the demand for the houses. The high rates of unemployment also increase the housing market. Also, the unemployment rate of 4’6 % impacts lowly o the housing market, and since more than 2.9 million new jobs are created a year, there are many high chances of economic growth. Another factor that has affected the demand for the houses in the united states is affordability. Many houses are affordable in the unsuited states. When the homes are affordable in the country, the demand will increase as many people would have an opportunity to purchase the houses in the states. The high number of potential buyers implies that the homes are affordable and the standards of living would be perceived to be fair.
Consumer confidence is another factor that affects ether demand of houses in the united states. The willingness of the consumers to purchase homes is very significant in the housing market where willing buyers have more excellent opportunities to purchase houses of their own choices and preferences.
The recession period, 2007-2009
The great recession period is termed as the period of general economic decline which was observed in the world markets between 2007 and 2013. In the united states, the recession originated, it lasted from December 2007 and ended in June 2009. The period was characterized by a high decline of the economy which was also affected by factors such as the job market and housing market. The economy of the united states, therefore, suffered a lot since the recession made it lose a lot. The recession was also related to the US supreme mortgage crisis of 2007- 2009. It led to a significant scarcity of valuable assets in the market economy thus leading to declining of the financial sector such as banks. It, however, faced the developed countries heavily such as the North America which was significantly affected.
The job market after recession period
During the recession period in the united states, there were high rates of unemployment which affected a very large number of people. Many people thus sought loans from banks which were then not strict on properties such as houses and even employment opportunities. The decline of the economy thus decelerated the creation of new job opportunities in the country. The limited job opportunities were however gained with specific people who must have not just made a direct application to get the jobs. Unemployment rates are one of the factors which also contributed to the recession period. One of the changes on the job market was that after the recession period, there was the creation of new jobs in the united states which solve the many problems of unemployment. For example, the rate of unemployment reduced from 9.8 in 2007 to 4.1 in 2017 which is an excellent remark for the economic growth. However, during the recession period, the level of unemployment increased steadily from 5% to 10 % which was not healthy for the economy of the united states (“U.S. Bureau of Labor Statistics”).
It is therefore evident that after the recession period also, there was an increase in wages to employees who were previously employed. The wage increase was a significant factor that was predicted to could have an impact on the economy of the US. The job market, therefore, reached a turning point at the end of recession where it was recovered. The united states, therefore, regained the same level of the implement which it had before the recession period. There were also many jobs created which were subscribed with attractive wages. Many people, therefore, got back their jobs after the very long period of economic crisis.
New jobs were also created to match the population of America which was then very high. The demand for the job opportunities in the united states, therefore, increases many people sought jobs after the recession period. Since the supply of employment also reduced, it was an obligation to seek for more jobs in the world market to sustain the high number of unemployed people in the states (“U.S. Bureau of Labor Statistics”).
Housing market after the recession period
Before the recession, there were some policies such the policy of house ownership which led to the housing boom in 2006. During the recession period, the housing bubble busted which implied the decline of the housing market used to low housing prices. There were also high rates of unemployment which affected the demand for the house in the United States. The downfall of banks made the sales of houses to reduce in cost as houses were sold cheaply due to low demand.
After the recession period, the housing market was resurrected, and it boomed at once. The demand for the houses increased whereas the rates of unemployment were predicted to reduce at a slow rate.
After the recession also, the banks were very lenient and could only issue loans to people who had properties that could be mortgaged by the banks. Also, the sales and investment in the housing market improved thus accelerating the economic growth of the united states. The economy, therefore, increases as the prices of the house increased steadily which was also outmatched by the demand that was very high.
In conclusion, the economy is one of the most significant aspects of the world or rather in particular country s that should be looked into keenly. Different economies have different methods of growth and speeds. The factors that accelerate the economic growth should be taken in to consideration to avoid again the recession period which when occurs; the world market is at a considerable risk. Many counties can also be at a considerable financial risk when the recession period happens. For example, the united states have a lot of debts which it is required to pay to form its investments in other countries.

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