Unemployment in the Real Estate Industry

Many sectors have suffered tremendous losses due to the United State’s recession. Many companies have closed down. Several banks have filed for bankruptcies. Too many people were laid off. About 6% of the total number of civilian labor force on a monthly basis lost their jobs from November 2009 to November 2010, with at least 53% of them losing jobs due to layoffs. That is a huge amount. It is alarming for any country to look at that 53% mark as an indication of people losing jobs due to layoffs, which also meant that the companies of these laid off people are losing in some kind. In layman’s terms, layoffs or announcements of retrenchments and redundancies are an indication that the money coming in to the company cannot compensate with expenses. The company had to take measures in protecting the stability of their business. One way to save money is to lose some of its people, more likely, to save money on salary. Unemployment is a huge burden to carry, not only for the individual, but for any government to that matter.

One of the sectors that suffered this scenario is the real estate sector. Real estate had risen tremendously during the last decade of the 21st century. However, certain concepts may have provided convenience to buyers, but they have caused banks and related lending institutions to plunge into severe losses. These concepts were refinancing, second mortgages, some form of reckless ending, superfluous price appraisals, and so much more. There were foreclosed properties and the sale of these properties was not immediate due to people refusing to buy. Others have failed to pay their mortgages. The real estate industry has suffered one of the most tremendous blows in the recession. Its employees may have suffered, but none could have suffered more damages than those working in banking companies that filed for bankruptcies and lay off thousands of people due to slow returns of loaned money.

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