Unemployment Experiencing A “Structural” Increase

By
Real Estate Services with TheHousingGuru.com

In a presentation made today, Dennis Lockhart, President and CEO of the Atlanta Fed has predicted only a modest economic recovery with unemployment experiencing a “structural” increase. Lockhart pointed out several reasons why employment may be establishing a new normal, with rates to remain above those of past years as jobs are eliminated, workers have difficulty relocating, and a great number of applicants lack the skills necessary for employment.

 

While the report attempted to add a positive spin to the facts, it seems clear that the expectation is for a recovery unlike those of past recessions and one that will lack the fundamentals necessary to dramatically improve the jobless rate.

 

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Rainmaker
262,674
Pat & Steve Pribisko
Keller Williams Greater Cleveland West

What we are seeing in the Creater Cleveland OH Area is a increase in small businesses, many are comprised of one person with a home office.  I believe this is going to continue for the foreseeable future.

April 02, 2010 12:34 PM
Ambassador
883,319
Lane Bailey
Realtor & Car Guy
Century 21 Results Realty

I don't see the "off-shoring" to be as big of a problem as many others do.  I can't source it right now, but I'd read that there were about 5x as many jobs "on-shored" (foreign companies employing Americans) as off-shored.  And I see the Japanese and German carmakers building here. 

While I think we need to strengthen our manufacturing, I also think that making it more expensive to employ Americans in America isn't a great strategy...

April 02, 2010 11:45 PM
Rainmaker
453,501
John Mulkey
Housing Guru
TheHousingGuru.com

Pat & Steve - There are lots of small start-ups; hopefully some can grow to big operations.

Lane - What I'm referring to isn't really "off-shoring," but the fact that we've given up our manufacturing edge. And while some of that is good, we can't just be a service oriented economy--and still be the major player we want to be.  I agree that we can't just continue to pay more to manufacture here; and our current course is a problem--one for which I have no solution to offer.

April 03, 2010 09:16 PM
Rainer
178,546
Stephen P. Panczak, Sr.
Realtor, Property Mgm't, LCAM
Keller Williams Realty of Palm Beaches

John - it's difficult to see anything positive with the unemployment issue when jobs are gone in manufacutring to other countries, other employers are running lean to keep their doors open.

April 04, 2010 05:22 AM
Rainmaker
453,501
John Mulkey
Housing Guru
TheHousingGuru.com

Stephen - I have to agree with Lockhart; some of the changes we're seeing will be permanent.

April 04, 2010 10:00 AM
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John Mulkey

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