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This is hardly a surprise to those following economic news. It is a well known fact that excesses of 1990's were not purged out of the system (via long recession) but debt problems remained unsolved due access to cheap credit.

The boom in private residential construction (and assiciated trades) have matched increase in percentage of population owning (actually having bought) their housing as well as rapid increase in residential construction costs.

The boom in governmental jobs can be associated with at first a DoD budget increases ("get well") and then 9/11 with associated wars that increase expenditure of defense articles.

The falling sectors include information (burning excesses of "Y2K" and telecom boom) and manufacturing (poorly performing fields include autos and forestry). The big deal here is that manufacturing losses are now biting also durable goods while job losses have been concentrated on non-durable goods in earlier recessions.

The Great American Job Creation Machine(c) has been badly sputtering throughout the 21st century mostly because of nature of shallow recession. Job growth is essentially tied to business investments and during this recession the business investments have been postponed due (excessive?) capacity buildup in 1990's. This is closely related to lack of expected (domestic) demand due weak wage growth and debt load.  That is why the job growth in sectors that serve general public has been so slow. On the other hand, the growth in sectors aimed towards serving well-to-do are doing just fine. This is made possible by very large concentration of wealth to people who form the latter part of comsumer. However, the number of jobs needed to serve one Will Wealthy is essentially smaller than what is needed to server hundred Al Averages.

The irony (and tragedy) of US is that the two-tiered economy allows you to have both boom (in high street) and bust (in main street) at the same time...

by Nikita on Wed Feb 1st, 2006 at 01:52:25 AM EST

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