The last few years have been hard for businesses, starting with the crash of the housing market and the economy back in 2008. There were many factors that had a huge impact on the economy such as defaulted mortgages. If you ask any successful businessman such as Bobby Kotick, they will tell you that this decline in the economy spread from the housing market to impact all parts of the business world.
However, it appears that things may be turning around. The housing market is starting to rebound. Fewer people are defaulting on their loans. More jobs are starting to creep back onto the market. Is this finally the end of the recession?
While it can be hard to know for sure, signs seem to indicate that this really is the recovery that people have been hoping for since the crash. Housing has been steadily gaining, meaning that more people are able to buy homes. The problem with the crash was that people lost their jobs, so they could not buy new homes. This made things worse across the board for the housing market. Since people are now able to buy new homes and willing to pay more for them, it indicates that they have steady jobs and that they feel optimistic about the future and the direction that things are going.
There are also a few indications in the business world to show that things are getting better. One of the largest indicators is the unemployment numbers, which can be calculated to some degree by looking at how many people apply for benefits each month. The numbers are falling. One assumption is if people do not need the benefits any longer, it is because they have found employment that negates the need to financial aid. Many businesses are starting to expand and add new jobs in new locations.
Another positive side to this is that the overall economy and the job market work together as a single system. As more people find employment, they have more money to spend. As they begin to spend their money, they help to build up local businesses. In turn, existing businesses expand and new businesses are started.
This is especially nice for entrepreneurs who have product ideas that people like, but who previously did not have the market for their goods or services. They may now be in a position to start companies that may have floundered before, not because the products were unwanted but because people did not have the money to buy them. As the economy grows, so too can new businesses, creating even more jobs.
The beauty of this rebounding economy and rising job market is that both parts can keep working in this cyclical fashion to sustain the overall economy. A strong economy creates new jobs, which in turn makes the economy stronger for everyone, making it possible for even more new jobs to spring up in the future. It is hard to turn the economy around, but it’s great once it gets going.