U.S. housing recovery to boost job market, says Goldman Sachs report

February 14, 2013 01:30PM

The pace of residential investment-related employment is predicted to pick up this year and in 2014 thanks to the housing recovery, CNBC reported, citing a Goldman Sachs report issued this week. Moreover, the increase in employment could mean the addition of 25,000 to 30,000 jobs monthly — a far cry from the 14,000 average monthly over the past year. These jobs include construction, manufacturing, real estate and wholesale trade, to name some examples.

Following the recession, the layoffs in these sectors were heavy and, according to the report, jobs have been slow to come back. Construction was dealt a tough blow, losing 1.5 million jobs, or 42 percent of the workforce, between 2006 and 2011. Since then, however, 100,000 jobs came back. Adding in other sectors, like manufacturing and wholesale trade, a total of 2.8 million jobs were shed, or 31 percent, and 300,000 of these positions have returned.

“Even at this faster rate, it will take many years before housing-related employment attains its prior highs,” the report said.

The construction loan industry is beginning to show a pulse again, as previously reported, with lenders increasingly eyeing new developments. [CNBC]Zachary Kussin