The cause and effect relationship between the housing market and job creation is well established. Historically, when people have returned to work following a recession, it has bolstered the housing market (although it can be argued that household income is a more critical factor than job creation).
But how much has the current housing recovery increased job growth?
According to a study conducted by CareerBuilder and EMSI Research, the current recovery is leading to growth in numerous job sectors, particularly construction, which has added more than 187,000 jobs, an increase of 2%, since 2011. Currently, there are 7,794,077 people employed in this industry, according to the firms' research.
Housing-related industries outside of construction have also added new jobs. Since 2011, more than 59,000 additional housing supply chain jobs have been created, an increase of 3%. About 1,755,863 people are currently employed in this segment, the study finds.
The study also provides job growth figures for specific segments within the housing supply chain, each of which has seen an increase in job creation in the past two years.
For example, the mortgage and non-mortgage loan brokers segment added 19,317 jobs since 2011, representing 30% growth. Currently about 84,759 people are employed in this segment. The home centers and other home furnishing stores segment added 23,849 jobs since 2011, representing 3% growth. Currently 823,496 people are employed in this segment.
The building materials dealer segment added 11,305 jobs, representing 4% growth, and now employs about 317,987 people. The hardware, paint and wallpaper stores segment added 4,062 jobs, representing 2% growth, and now employs 184,017 people. And the upholstered household furniture manufacturing segment added 1,828 jobs, representing 4% growth, with 53,838 people currently employed.
‘Several industry segments closely tied to the housing sector have experienced encouraging job growth over the last 12 to 18 months as home prices and sales inch up, and the economy improves,’ said Matt Ferguson, CEO of CareerBuilder. ‘While some segments may still be trailing pre-recession employment levels and may not fully recover jobs lost, we're seeing signs of a rebound in everything from construction and mortgage banking to home furnishing stores.’
The study also includes job growth trends in select Metropolitan Statistical Areas (MSAs).