Down Job Market Could Be A Good Sign!

June 3, 2009 · Print This Article

It’s true, the news continues to pour in about the “Down Job Market” and this has many people uptight. Sure, in a perfect world there would be little unemployment but that’s not where we live. So it’s time we look at the big picture and see how the current job market could be an indicator of good things to come.

The Economy is Causing People to Cut Back

People everywhere are cutting back and making due with what they have because of the economy. The news media knows that bad news sells better than good news so they continue to print the gloomy economic blather. In fact, today the Charlotte Observer ran an article about the “U.S. Job Market Mostly Dark.” They just love to print news about how the job market is worse today than it was this time a year ago. Duh!!! The fact is, as people cut back they purchases less and this causes companies to have to cut back just like the individuals are doing. So the downward cycle continues until the individuals come to their minimum purchase point. This will leave companies to fill just that need. When this equilibrium is reached the layoffs stop. This is when the economy has actually reached “the bottom.”

When Has The Economy Reached “The Bottom?”

That’s what everyone wants to know. So, now that you know the answer lets think about what all this tell us about the future? Let’s stop comparing this year to last year because we all know that it is worse now. The key is, how do the layoffs this month compare to last month. When the number of layoffs month over month slows we know we are near the bottom. Let’s get there as quickly as possible. Why? Well… when you are at the bottom there is only one way to go… UP!

What Will Cause the Economy to Turn Around?

For starters, people have to feel confident in their job. Until then they won’t be buying nearly as much of anything… including real estate, automobiles, boats, nice dinners out, etc. So, what will allow these people to feel more confident? Obviously, they must no longer fear for their jobs. So, let the companies cut back just like we all are doing as individuals. Then, we get to the bottom and wallow at that level until people start to gain confidence that we are not going down any more. That’s we we will all start to want more. That desire will cause us to spend more and, in turn, cause companies to produce more. Guess what? That will cause them to hire more people and that will be the beginning of the recovery!!!

Your Charlotte Connection is The Ramsey Group

Do you know anyone who would like to move to Charlotte, North Carolina? At The Ramsey Group we love Charlotte and we love to help people who are moving here. We have helped hundreds of people over the years make their dream home a reality! Email Mark@TheRamseyGroup.net and we’ll take great care of you or whomever you refer to us!

Written by Mark Ramsey