Despite a boom in residential construction activity, construction employment growth has remained lackluster and is up just 100,000 from the trough in early 2011. This is because residential building declined by more than residential employment resulting in value added/worker falling from about $80,000/year to about $60,000/year as employers kept their best workers. But with total construction hours now above previous highs, expect 20,000 new hires/month for the next few years.
Elliot F. Eisenberg, Ph.D.
GraphsandLaughs, LLC
www.econ70.com
eisenberg
Economy Strength
As the economy strengthens, the Fed must begin to end its exceptionally expansionary monetary policy of the last half decade. It will begin by halting its purchases of $85 billion/month in Treasuries and mortgage-backed-securities. Second, it will stop reinvesting interest and principal on its holdings. Third, it will start raising overnight interest rates and lastly it will slowly liquidate its vast holdings of long-term debt. This process will take years.
Elliot F. Eisenberg, Ph.D.
GraphsandLaughs, LLC
elliot@graphsandlaughs.net
Cell: 202.306.2731
www.econ70.com
