A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Why a poor jobs report hurts everyone
The Jobs report that came out Friday was a very ugly report
and it shows not only that the Country is not creating enough jobs to keep up
with the population, but more and more people are getting out of the jobs
market and staying home.
If you have a job, you may say, “How does this affect me?”
Well at first glance, it may not affect the average American
with a job and a stable life, but the ripple effect of a slowing economy, an
economy that has been moving like a snail at best anyway, has tentacles that
affect all of us. First the Federal Reserve will back away from raising
interest rates any time soon, which really hurts savers. If you have any money
in the bank, you might as well put it under your mattress, you will make about
as much money. Now you may say that low interest rates are great for borrowers
and there is some validity to that, but interest rates have been low for years
and have had little effect on the economy.
The jobs report really hurts people in the Real Estate
business, because when jobs are scarce, people don’t buy and sell homes. The
housing market has been moving at a good pace, but eventually reality will slow
the market down and if jobs continue to be a drag on the economy, buying a home
will not be a priority for many. As we have been talking about, people have not
been selling their homes, because they don’t feel that they can buy the home
that they want due to the low inventory.
When jobs are scarce it keeps wages stagnate as they have
been for years now. The more jobs available, the more competition businesses' have
with each other to get the best people and they need to pay more. The fewer
jobs that people have to choose from, the less businesses’ have to pay their
employees.
So you can see how the jobs report affects everyone and if
it continues to go in the wrong direction, the economy will continue to move
slowly and may even come to a stop.
We need good policies from Washington to
get the economy moving in the right direction. When you put more and more
pressure on businesses with regulation and taxes, you disincentives job growth.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.