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Roxanne Bailey

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Compass RE Texas, LLC - The Woodlands
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Americans Are Gaining Confidence in the Economy

October 27th, 2020


Americans Are Gaining Confidence in the Economy | Simplifying The Market

The September Jobs Report issued by the Bureau of Labor Statistics reported that the unemployment rate dropped to 7.9%. Though that percentage is well below what experts projected earlier this year, it still means millions of people are without work. Theres no way to minimize the tremendous impact this pandemic-induced recession continues to have on many Americans.

However, the latest Home Purchase Sentiment Index from Fannie Mae shows how more and more Americans believe the worst is behind us, and their personal employment situation is good. The index revealed:

The percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 78% to 83%, while the percentage who say they are concerned decreased from 22% to 16%. As a result, the net share of Americans who say they are not concerned about losing their job increased 11 percentage points.

Americans Are Game-Changers Too

Americans are naturally optimistic and have always responded to challenges with both resiliency and resourcefulness. Today is no different. As an example, the Wall Street Journal (WSJ) just reported:

Americans are starting new businesses at the fastest rate in more than a decade, according to government data, seizing on pent-up demand and new opportunities after the pandemic shut down and reshaped the economy.

Why would someone start a business in the middle of an economic crisis? The WSJ explains:

The jump may be one sign that the pandemic is speeding up creative destruction, the conceptto describe how new, innovative businesses often displace older, less-efficient ones, buoying long-term prosperity.

The WSJ also notes that these new businesses will have a positive impact on the overall employment situation, as new businesses are a critical engine of job creation. Startups have historically accounted for around one-fifth of job creation.

Bottom Line

For the millions of Americans still unemployed, we hope for a quick return to the workforce. We should, however, realize that over 90% of people are still employed, and some are venturing into new business start-ups. Perhaps the next big game-changing company is right around the corner.


Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

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