Permanent Job Loss. Don't Worry, It Is Only Consstruction And Production.

http://online.wsj.com/article/SB126325594634725459.html?mod=WSJ_hp_mostpop_read
Even in a Recovery, Some Jobs Won't Return

Since December 2007, the U.S. lost 7.2 million jobs. The jobs lost in the construction industry and housing industry (close to 2 million jobs) will not come back any time soon.

For those of you who don't remember, or plain don't know, the federal government had instituted a program that was kind of like the cash for clunkers program, except it was a homes for the poor program. This program required banks to loan money on homes so that poor people who couldn't afford homes, now could buy homes (that they still couldn't afford to own). The program was know to the industry people as NINJA loans. No Income No Job or Assets. Because the people buying homes couldn't afford them, no one wanted to have those loans on their books. The financial industry (with the aid of the federal government) repackaged these loans and sold the loans as if they would eventually get paid back. When the homeowners eventually defaulted on the NINJA loans, the housing bubble burst, and everyone associated with the loans crashed and burned, including the U.S. economy along with all the wall street financial organizations that helped package and resell the NINJA loans.

When all these NINJA people started buying homes, the construction industry geared up by adding lots more employees to build homes for the NINJA people to move into. Because all those NINJA people are now losing their homes (expect 2 million or more per year for the next few years) all those homes are now back on the market for sale. Since there were not enough people who could afford to buy those homes to start with, and the construction moved into high gear to build lots more homes that people couldn't afford to own, there is now a massive amount of homes available for sale that no one can afford to buy. So the entire construction industry can be shut down for a few years without any noticeable decrease in the available homes for sale. Except for the bank failures for the banks forced to foreclose on the homes that are in default.

I started off focusing on the construction industry, because it is a large component of the current great depression, but there are a lot of other industries in financial difficulty. Our great depression has help many other businesses phase out workers faster than they would have otherwise. Improved automation will help those businesses keep those workers out of those businesses. Our great depression has help many businesses close their doors faster than they would have otherwise.

The article says that the U.S. recovered quicker from prior recessions. But those recessions didn't close businesses, they only encouraged layoffs among the temporary workers.

We are currently at the start of a great depression. Not only are jobs being lost, but businesses are being lost. The nature of the economy is changing. We continue to move from a productive society to a consumption society. So all the people formerly working in a productive capacity will have no jobs to return to, and there are no similar jobs in existence.

The labor department however, expects growth in the health care industry. With all the added rules and regulations for the expected Health Care Deform bill it will likely take an army of unskilled and nontechnical people to administer the new improved health care system.