{"id":19940,"date":"2023-06-26T10:53:49","date_gmt":"2023-06-26T14:53:49","guid":{"rendered":"https:\/\/lockboxcoaching.com\/?p=19940"},"modified":"2023-06-26T10:53:49","modified_gmt":"2023-06-26T14:53:49","slug":"unemployment-a-crash-course-for-realtors","status":"publish","type":"post","link":"https:\/\/lockboxcoaching.com\/unemployment-a-crash-course-for-realtors\/","title":{"rendered":"Unemployment: A Crash Course for Realtors"},"content":{"rendered":"
Hello Realtor friends, it\u2019s time for another blog post designed to empower you with knowledge about leads, listings, and leadership. Today we are going to demystify the economic term \u2018unemployment,\u2019 and learn why we should care about it as Realtors. I’ve spent a considerable portion of my career being a student about the economic drivers of our industry, and today, we dive into the significance of ‘Unemployment’.<\/span><\/p>\n <\/p>\n Yes, as Realtors, we do care about unemployment. You may ask, “Why does it matter?” I can\u2019t emphasize enough that understanding the economic landscape is crucial for our profession. Our ability to converse competently and confidently about these issues aids in converting prospects at a higher rate. It also helps us earn trust and referrals swiftly from our sphere of influence. Finally, understanding the drivers of our industry and where we stand in relation to them gives us a better ‘line of sight’ on what’s going to happen next in the economy … and preapre our businesses and our clients for it!\u00a0<\/span><\/p>\n <\/p>\n <\/p>\n At its core, an unemployed individual is simply defined as someone without a job that is actively looking for a job. So \u2018Unemployment\u2019 is simply the aggregate number of people not working that are actively looking to work.\u00a0<\/span><\/p>\n <\/p>\n A common misconception is that the ideal unemployment rate is 0%, signifying full employment. However, the reality is more nuanced. The federal government considers a healthy unemployment rate to lie between 5% and 6%. This margin allows for fluid turnover in the job market and keeps the economy flexible.<\/span><\/p>\n <\/p>\n You might ask, “What happens when the unemployment rate exceeds or falls below this margin?” If it’s more than 6%, it implies that not enough people are finding the work that they need to pay their bills. This means there aren\u2019t enough jobs for all the people looking for jobs. That’s bad: less people earning money means less people spending money, which means GDP starts to contract. It becomes a downward spiral. Conversely, if less than 5% of the working population is unemployed, then employers start paying high salaries to attract scarce talent. This fuels inflation, which can be a dangerous economic event. We\u2019ll learn more about that in next week\u2019s post.\u00a0<\/span><\/p>\n <\/p>\n <\/p>\n Currently, we find ourselves in the latter situation: over-employment. With an unemployment rate of 3.5%, the lowest in 50 years, companies are vying for talent and raising salaries to be more competitive.\u00a0<\/span><\/p>\n <\/p>\n While this puts inflationary pressure on the economy, it also has an interesting counterbalancing effect. The increasing salaries mean more disposable income and purchasing power for potential homebuyers. It’s one of the key factors sustaining our market and the overall economy right now. As we witness economic uncertainties, this low unemployment rate, somewhat paradoxically, acts as an anchor of stability.\u00a0<\/span><\/p>\n <\/p>\nWhat is Unemployment?<\/span><\/h2>\n
What is Unemployment Like Today?\u00a0<\/span><\/h2>\n