[lbo-talk] Since 2001,the health-care industry has added 1.7 million jobs. The rest of the private sector? None

[Marvin Gandall]

Doug H. writes:
>
> On Sep 17, 2006, at 11:01 PM, mike larkin wrote:
>
>> But the very real problems with the health-care system
>> mask a simple fact: Without it the nation's labor
>> market would be in a deep coma. Since 2001, 1.7
>> million new jobs have been added in the health-care
>> sector, which includes related industries such as
>> pharmaceuticals and health insurance. Meanwhile, the
>> number of private-sector jobs outside of health care
>> is no higher than it was five years ago.
>
> Hmm, well, if health care weren't so expensive, maybe some other  sectors
> could have afforded to hire some fresh help.
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The housing boom generated many private sector jobs. According to the New
York Times ("Housing Slows, Taking Big Toll on the Economy", July 29, 2006):

"While the fate of housing prices has received far more attention recently
than real estate's role as an engine of job growth, the sector has also
become one of the country's most important industries. Residential
construction and all the activity that swirls around it - mortgage lending,
renovations and the like - account for roughly 16 percent of the economy,
making it the largest single sector, slightly bigger than health care.

For much of the last five years, housing - along with health care - was also
one of the only reliable generators of jobs. From the start of 2001, when
the Fed began cutting its benchmark rate to steady a faltering economy,
until early last year, the housing sector added 1.1 million jobs.

The rest of economy lost 1.2 million jobs over the same period, according to
an analysis by Moody's Economy.com."

American jobs and household debt are so tied to residential real estate you
can see why the Fed is holding its breath about the depth of the downturn.