Statistics Show Small Businesses are Thriving
How it affects national unemployment rates..
As all of you well know, wellness of the economy is based on many factors. The real estate market is an important component as well as the stock market. However, the element of the economy that I’m speaking of in today’s blog is the unemployment rate. For the past several years the unemployment rate has been comparable to a pendulum – first scooping downward causing worried furrowed brows then swinging upward giving us all hope for a strong comeback. Here we are after a sharp decline ready for the upswing. According to this article on CNN Money titled “Private Sector Adds 209,000 jobs in March” by Annalyn Censky, this new addition of jobs could help the market improve.
This season has been an interesting one for jobs, especially construction jobs. Due to the freakishly warm weather over the winter season many construction companies and independent contractors were able to stay in business for more days than usual, adding to good employment rates this season.
The cold hard fact is that “the economy needs about 125,000 new jobs each month just to keep the unemployment rate steady. To dig out of the jobs hole left by the financial crisis, it needs far more.” So while the forecast for this month was about 217,000 it’s still a blessing that we landed here at 209,000 rather than the possible 125,000 average we need per month.
The real question of the year is will we ever get back to a 5% unemployment rate again. “Prakken forecasts that it take another three or four years for the unemployment rate to fall back to pre-recession level of around 5%”. If you really think about it three to four years is not that long! And this is if we keep the bare minimum increases each month and year which I personally believe is possible.
I’m not sure if it’s the same everywhere, but here in Sonoma County small businesses are continuing to drive job growth. Here, we’re all about locality and the “mom and pop” shops rather than corporations. As a result it’s the small businesses that are beginning to fuel employment. Here are the statistics of small business vs. corporations: “Companies with fewer than 50 employees made up about half of all private sector job gains, hiring 100,000 people. Large companies with 500 or more employees hired 22,000 new workers and medium sized businesses added 87,000 to their payrolls”.
So if you look at the statistics, small businesses are flourishing which is always desirable. “Economists surveyed by CNNMoney expect the Labor Department’s data to show 200,000 jobs added in March including the 210,000 from the private sector and a loss of 10,000 government jobs”.
If we can keep these trends going I can guarantee you that other parts of the market will also start improving – it’s all interconnected. With the Real Estate Market on the rise and employment rates staying constant, things can only look up.
See unemployment rates in your state by clicking this link.
For local Real Estate and Mortgage advice in Sonoma County, call Sun Pacific Mortgage and Real Estate. If you have been thinking of investing in the real estate market we have many hard money loans and could use more Investors! Give us a call today (523-2099)
For the article this blog was based on check out this site.
Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link!