Beyond Evergrande, China’s Property Market Faces a $5 Trillion Reckoning

As many economists say China enters what is now the final phase of one of the biggest real-estate booms in history, it is facing a staggering bill: According to economists at Nomura, $ 5 trillion plus loans that developers had taken at a good time. Holdings Inc.

The debt is almost double that at the end of 2016 and last year exceeded the overall economic output of Japan, the world’s third-largest economy.

With warning signs on the debt of nearly two-fifths of growth companies borrowed from international bond investors, global markets are poised for a potential wave of defaults.

Chinese leaders are getting serious about addressing debt by taking a series of steps to curb excessive borrowing. But doing so without hurting the property market, crippling more developers and derailing the country’s economy is turning into one of the biggest economic challenges for Chinese leaders, and one that resonates globally when mismanaged. could.

Luxury Developer Fantasia Holdings Group Co. It failed to pay $206 million in dollar bonds that matured on October 4. In late September, Evergrande, which has more than $300 billion in liabilities, missed two interest-paying deadlines for the bond.

A wave of sell-offs hit Asian junk-bond markets last week. On Friday, bonds of 24 of 59 Chinese growth companies on the ICE BofA Index of Asian Corporate Dollar Bonds were trading at over 20% yields, indicating a high risk of default.

Some potential home buyers are leaning, forcing companies to cut prices to raise cash, and could potentially accelerate their slide if the trend continues.

According to data from CRIC, a research arm of property services firm e-House (China) Enterprise Holdings, overall sales among China’s 100 largest developers were down 36 per cent in September from a year earlier. Ltd.

It revealed that the 10 largest developers, including China Evergrande, Country Garden Holdings Co. and china wenke Co., saw a decline of 44% in sales compared to a year ago.

Economists say most Chinese developers remain relatively healthy. Beijing has the firepower and tighter control of the financial system needed to prevent the so-called Lehman moment, in which a corporate financial crisis snowballs, he says.

In late September, Businesshala reported that China had asked local governments to be prepared for potentially intensifying problems in Evergrande.

But many economists, investors and analysts agree that even for healthy enterprises, the underlying business model—in which developers use credit to fund steady churn of new construction despite the demographic less favorable for new housing—is likely to change. Chances are. Some developers can’t survive the transition, he says.

Of particular concern is some developers’ practice of relying heavily on “presales”, in which buyers pay upfront for still-unfinished apartments.

The practice, more common in China than in the US, means developers are borrowing interest-free from millions of homes, making it easier to continue expanding but potentially leaving buyers without ready-made apartments for developers to fail. needed.

According to China’s National Bureau of Statistics, pre-sales and similar deals were the region’s biggest funding sources since August this year.

“There is no return to the previous growth model for China’s real-estate market,” said Hous Song, a research fellow at the Paulson Institute, a Chicago think tank focused on US-China relations. China is likely to put a set of limits on corporate lending, known as the “three red lines” imposed last year, which helped trigger the recent crisis on some developers, he added. That China can ease some other restrictions.

While Beijing has avoided explicit public statements on its plans to deal with the most indebted developers, many economists believe leaders have no choice but to keep the pressure on them.

Policymakers are determined to reform a model fueled by debt and speculation as part of President Xi Jinping’s broader efforts to mitigate the hidden risks that could destabilize society, especially at key Communist Party meetings next year. before. Mr. Xi is widely expected to break the precedent and extend his rule to a third term.

Economists say Beijing is concerned that after years of rapid home price gains, some may be unable to climb the housing ladder, potentially fueling social discontent, as economists say. The cost of young couples is starting to drop in large cities, making it difficult for them to start a family. According to JPMorgan Asset Management, the median apartment in Beijing or Shenzhen now accounts for more than 40 times the average family’s annual disposable income.

Officials have said they are concerned about the risk posed by the asset market to the financial system. Reinforcing developers’ business models and limiting debt, however, is almost certain to slow investment and cause at least some slowdown in the property market, one of the biggest drivers of China’s growth.

The real estate and construction industries account for a large portion of China’s economy. Researchers Kenneth S. A 2020 paper by Rogoff and Yuanchen Yang estimated that industries, roughly, account for 29% of China’s economic activity, far more than in many other countries. Slow housing growth could spread to other parts of the economy, affecting consumer spending and employment.

Government figures show that about 1.6 million acres of residential floor space were under construction at the end of last year. This was roughly equivalent to 21,000 towers with the floor area of ​​the Burj Khalifa in Dubai, the tallest building in the world.

Housing construction fell by 13.6% in August below its pre-pandemic level, as restrictions on borrowing were imposed last year, calculations by Oxford Economics show.

Local governments’ income from selling land to developers declined by 17.5% in August from a year earlier. Local governments, which are heavily indebted, rely on the sale of land for most of their revenue.

Another slowdown will also risk exposing banks to more bad loans. According to Moody’s Analytics, outstanding property loans—mainly mortgages, but also loans to developers—accounted for 27% of China’s total of $28.8 trillion in bank loans at the end of June.

As pressure on housing mounts, many research houses and banks have cut China’s growth outlook. Oxford Economics on Wednesday lowered its forecast for China’s third-quarter year-on-year GDP growth from 5% to 3.6%. It lowered its 2022 growth forecast for China from 5.8% to 5.4%.

As recently as the 1990s, most city residents in China lived in monotonous residences provided by state-owned employers. When market reforms began to transform the country and more people moved to cities, China needed a massive supply of high-quality apartments. Private developers stepped in.

Over the years, he added millions of new units to modern, streamlined high-rise buildings. In 2019, new homes made up more than three-quarters of home sales in China, less than 12% in the US, according to data cited by Chinese property broker Kei Holdings Inc. in a listing prospectus last year.

In the process, developers grew to be much bigger than anything seen in the US, the largest US home builder by revenue, DR Horton. Inc.,

Reported assets of $21.8 billion at the end of June. Evergrande had about $369 billion. Its assets included vast land reserves and 345,000 unsold parking spaces.

For most of the boom, developers were filling a need. In recent years, policymakers and economists began to worry that much of the market was driven by speculation.

Chinese households are prohibited from investing abroad, and domestic bank deposits provide low returns. Many people are wary of the country’s booming stock markets. So some have poured money into housing, in some cases buying three or four units without the intention of buying or renting them out.

As developers bought more places to build, land sales boosted the national growth figures. Dozens of entrepreneurs who founded growth companies are featured on the list of Chinese billionaires. Ten of the 16 soccer clubs of the Chinese Super League are wholly or partially owned by the developers.

Real-estate giants borrow not only from banks but also from shadow-banking organizations known as trust companies and individuals who invest their savings in investments called wealth-management products. Overseas, they became a mainstay of international junk-bond markets, offering juicy produce to snag deals.

A builder, Kaisa Group Holdings Ltd. , defaulted on its debt in 2015, was still able to borrow and later expand. Two years later it spent the equivalent of $2.1 billion to buy 25 land parcels, and $7.3 billion for land in 2020. This summer, Cassa sold $200 million of short-term bonds with a yield of 8.65%.

By: Quentin Webb & Stella Yifan Xie 

Source: Beyond Evergrande, China’s Property Market Faces a $5 Trillion Reckoning – WSJ

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How Many Senses Do You Have? A Lot More Than 5, Says Science

How many senses does the average human have? Assuming you equate senses with their receptors, such as the retinas in your eyes and the cochlea in your ears, then the traditional answer to this question is five – seeing, hearing, touch, smell and taste. They’re called the ‘exteroceptive’ senses because they carry information about the external world.

But your body also has receptors for events occurring inside you, such as your beating heart, expanding lungs, gurgling stomach and many other movements that you’re completely unaware of. They’re traditionally grouped together as another sense, called ‘interoception’.

Yet a proper answer to this question is even more complex and interesting. For one thing, your body has receptors to carry other types of information, such as temperature, that we don’t usually consider to be senses.

Also, some of your receptors are used for more than one sense. Your retinas, for example, are portals for the light waves you need for vision, but some retinal cells also inform your brain if it’s daytime or nighttime. This unnamed ‘day/night sense’ is the basis for circadian rhythms that affect your metabolism and your sleep/wake cycle.

Even senses that seem fundamental, such as vision, are intimately entwined with other senses that seem separate. For example, it turns out that what you see, and how you see it, is yoked to your brain’s tracking of your heartbeat, which is part of interoception.

In the moments when your heart contracts and pushes blood out to your arteries, your brain takes in less visual information from the world. Your brain also constructs senses that you don’t have receptors for. Examples are flavour, which the brain constructs from gustatory (taste) and olfactory (smell) data, and wetness, which is created from touch and temperature.

In fact, your brain constructs everything you see, hear, smell, taste and feel using more than just the sense data from your body’s receptors. Light waves, for example, don’t simply enter your eyes, travel to your brain as electrical signals, and then you see.

Your brain actually predicts what you might see before you see it, based on past experience, the state of your body and your current situation. It combines its predictions with the incoming sense data from your retinas to construct your visual experience of the world around you.

Similarly, when you place your fingers on your wrist to feel your pulse, you’re actually feeling a construction based on your brain’s predictions and the actual sense data. You don’t experience sensations with your sense organs. You experience them with your brain.

Barrett_Portrait-crop

 

By

Lisa is a professor of psychology at Northeastern University and the author of Seven And A Half Lessons About The Brain (£14.99, Picador)

Source: How many senses do you have? A lot more than 5, says science – BBC Science Focus Magazine

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Five senses refers to the five traditionally recognized methods of perception, or sense: taste, sight, touch, smell, and sound.

Five senses or The Five Senses may also refer to:

These Industries Added the Most Remote Jobs During the Pandemic, and Talent Is Tight

Listing an open role as work-from-home may sway applicants to apply, but founders will still likely face stiff competition for talent in the fields that have added the most remote positions during the Covid-19 pandemic.

Since March 2020, the vertical for marketing, media, and design has seen the biggest growth, with a 974 percent increase in remote roles paying six-figure salaries or higher, according to research from Ladders, a career site based in New York City. The data looked at 50,000 North American employers to find which high-paying professional fields have seen the most growth in remote work.

Project and program management is the next fastest-growing, with an 801 percent increase, followed by accounting and finance with a 750 percent increase. Runners-up include human resources and legal (546 percent), technology (521 percent), and engineering and construction (410 percent).

The availability of high-paying remote work across all fields has grown more than 1,000 percent since March 2020. At that time, there were just over 7,000 jobs available, compared with 80,000 today.

“The world is staying remote post-Covid,” says Ladders’ founder and CEO Marc Cenedella. “Your competitors, your suppliers, and your customers are increasingly comfortable with hiring remote employees in all fields. ‘Work-from-home’ is now a must-have for employers to be competitive.”

Working remotely may require changes in your workplace to be more employee-friendly and productive, Cenedella says. Fewer meetings, better-written communication, occasional in-person meet-ups are just some of the new behaviors and practices he’s seeing from remote employers. “It’s best to be proactive, curious, and open to new ideas as we all figure out what the workplace looks like in 2022 and beyond,” he says.

By: Anna Meyer, Assistant editor, Inc.@annavmeyer

Source: These Industries Added the Most Remote Jobs During the Pandemic, and Talent Is Tight | Inc.com

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Critics:

People who do their jobs from home, freelance or travel for work are increasingly leaving cities such as Los Angeles and San Francisco and taking their families — and jobs — to places including Denver and Boise, Idaho, according to The Wall Street Journal.

Here are the top 20 companies, hiring hundreds of remote workers each.

1. Appen

Headquarters: Chatswood, New South Wales, Australia

Industry: Technology (machine learning and artificial intelligence)

Remote jobs: voice coach, linguist, web search evaluator, transcriber

2. Lionbridge

Headquarters: Waltham, Massachusetts

Industry: Software and business (language translation)

Remote jobs: creative designer, social media assessor, project manager, scheduling assistant

3. VIPKid

Headquarters: Beijing, China

Industry: Education

Remote jobs: online English as a second language teacher

4. Liveops

Headquarters: Scottsdale, Arizona

Industry: Customer service

Remote jobs: customer service representative, licensed insurance agent, health care resource specialist

5. Working Solutions

Headquarters: Dallas, Texas

Industry: Customer service

Remote jobs: sales development representative, travel reservation specialist, corporate travel agent

6. Kelly Services

Headquarters: Troy, Michigan

Industry: Staffing

Remote jobs: data entry operator, administrative assistant, software tester, data analyst

7. EF Education First

Headquarters: Cambridge, Massachusetts

Industry: Education

Remote jobs: language teacher, copywriter, content writer, college counselor, IT coordinator

8. SYKES

Headquarters: Tampa, Florida

Industry: Customer service

Remote jobs: customer support agent, executive assistant, senior director of client management

9. Concentrix

Headquarters: Fremont, California

Industry: Business services

Remote jobs: sales and service representative

10. Williams-Sonoma

Headquarters: San Francisco, California

Industry: Retail

Remote jobs: customer service agent, technical designer, copy manager

11. UnitedHealth Group

Headquarters: Minneapolis, Minnesota

Industry: Health care

Remote jobs: product director, medical director, health and wellness coach, call center nurse

12. LanguageLine Solutions

Headquarters: Monterey, California

Industry: Translation

Remote jobs: interpreter, software engineer

13. TTEC

Headquarters: Englewood, Colorado

Industry: Business operations

Remote jobs: Salesforce developer, software engineer, consultant, web developer

14. TranscribeMe

Headquarters: San Francisco, California

Industry: Information technology, translation

Remote jobs: transcriptionist

15. Humana

Headquarters: Louisville, Kentucky

Industry: Health care

Remote jobs: sales manager, medical director, business and technology lead, sales executive

16. Cactus Communications

Headquarters: Mumbai, Maharashtra, India

Industry: Communications

Remote jobs: editor, medical writer, academic research evaluation

17. Transcom

Headquarters: Stockholm, Uppland, Sweden

Industry: Customer service

Remote jobs: technical support representative, payroll administrator, customer service agent

18. BroadPath Healthcare Solutions

Headquarters: Tucon, Arizona

Industry: Health care

Remote jobs: director of service operations, provider service representative, insurance claims processor, data specialist

19. Dell

Headquarters: Round Rock, Texas

Industry: Computer technology

Remote jobs: program manager, account executive, consultant, sales executive

20. Aetna

Headquarters: Hartford, Connecticut

Industry: Health care

Remote jobs: outreach coordinator, content quality reviewer, network relations manager, health coach

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Solar Power Is Dirt-Cheap and About to Get Even More Powerful

After focusing for decades on cutting costs, the solar industry is shifting attention to making new advances in technology. The solar industry has spent decades slashing the cost of generating electricity direct from the sun. Now it’s focusing on making panels even more powerful.

With savings in equipment manufacturing hitting a plateau, and more recently pressured by rising prices of raw materials, producers are stepping up work on advances in technology — building better components and employing increasingly sophisticated designs to generate more electricity from the same-sized solar farms.

“The first 20 years in the 21st century saw huge reductions in module prices, but the speed of the reduction started to level off noticeably in the past two years,” said Xiaojing Sun, global solar research leader at Wood Mackenzie Ltd. “Fortunately, new technologies will create further cost-of-electricity reductions.”

A push for more powerful solar equipment underscores how further cost reductions remain essential to advance the shift away from fossil fuels. While grid-sized solar farms are now typically cheaper than even the most advanced coal or gas-fired plants, additional savings will be required to pair clean energy sources with the expensive storage technology that’s needed for around-the-clock carbon-free power.

Bigger factories, the use of automation and more efficient production methods have delivered economies of scale, lower labor costs and less material waste for the solar sector. The average cost of a solar panel dropped by 90% from 2010 to 2020.

Boosting power generation per panel means developers can deliver the same amount of electricity from a smaller-sized operation. That’s potentially crucial as costs of land, construction, engineering and other equipment haven’t fallen in the same way as panel prices.

It can even make sense to pay a premium for more advanced technology. “We’re seeing people willing to pay a higher price for a higher wattage module that lets them produce more power and make more money off their land,” said Jenny Chase, lead solar researcher at BloombergNEF.

Higher-powered systems are already arriving. Through much of the past decade, most solar panels produced a maximum of about 400 watts of electricity. In early 2020, companies began selling 500-watt panels, and in June, China-based Risen Energy Co. introduced a 700-watt model.

Here are some of the ways that solar companies are super-charging panels:

While many current developments involve tweaks to existing technologies, perovskite promises a genuine breakthrough. Thinner and more transparent than polysilicon, the material that’s traditionally used, perovskite could eventually be layered on top of existing solar panels to boost efficiency, or be integrated with glass to make building windows that also generate power.

“We will be able to take solar power to the next level,” said Kim Dohyung, principal researcher on a perovskite project team at Korea Electric Power Corp., one of several companies experimenting with the material. “Ultimately, this new technology will enable us to make a huge contribution in lowering greenhouse gas emissions.”

Adoption of perovskite has previously been challenged by costs and technical issues that prevented commercial-scale production. There are now signs that’s changing: Wuxi UtmoLight Technology Co. in May announced plans to start a pilot line by October with mass production beginning in 2023.

Solar panels typically get their power from the side that faces the sun, but can also make use of the small amount of light that reflects back off the ground. Bi-facial panels started to gain in popularity in 2019, with producers seeking to capture the extra increments of electricity by replacing opaque backing material with specialist glass. They were also temporarily boosted by a since-closed loophole in U.S. law that exempted them from tariffs on Chinese products.

The trend caught solar glass suppliers off-guard and briefly caused prices for the material to soar. Late last year, China loosened regulations around glass manufacturing capacity, and that should prepare the ground for more widespread adoption of the two-sided solar technology.

Another change that can deliver an increase in power is shifting from positively charged silicon material for solar panels to negatively charged, or n-type, products.

N-type material is made by doping polysilicon with a small amount of an element with an extra electron like phosphorous. It’s more expensive, but can be as much as 3.5% more powerful than the material that currently dominates. The products are expected to begin taking market share in 2024 and be the dominant material by 2028, according to PV-Tech.

In the solar supply chain, ultra-refined polysilicon is shaped into rectangular ingots, which are in turn sliced into ultra-thin squares known as wafers. Those wafers are wired into cells and pieced together to form solar panels.

For most of the 2010s, the standard solar wafer was a 156-millimeter (6.14 inches) square of polysilicon, about the size of the front of a CD case. Now, companies are making the squares bigger to boost efficiency and reduce manufacturing costs. Producers are pushing 182- and 210-millimeter wafers, and the larger sizes will grow from about 19% of the market share this year to more than half by 2023, according to Wood Mackenzie’s Sun.

The factories that wire wafers into cells — which convert electrons excited by photons of light into electricity — are adding new capacity for designs like heterojunction or tunnel‐oxide passivated contact cells. While more expensive to make, those structures allow the electrons to keep bouncing around for longer, increasing the amount of power they generate.

— With assistance by Heesu Lee

By:

Source: Solar Power Is Dirt-Cheap and About to Get Even More Powerful – Bloomberg

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Critics:

Solar power is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV), indirectly using concentrated solar power, or a combination. Concentrated solar power systems use lenses or mirrors and solar tracking systems to focus a large area of sunlight into a small beam. Photovoltaic cells convert light into an electric current using the photovoltaic effect.

Photovoltaics were initially solely used as a source of electricity for small and medium-sized applications, from the calculator powered by a single solar cell to remote homes powered by an off-grid rooftop PV system. Commercial concentrated solar power plants were first developed in the 1980s.

As the cost of solar electricity has fallen, the number of grid-connected solar PV systems has grown into the millions and gigawatt-scale photovoltaic power stations are being built. Solar PV is rapidly becoming an inexpensive, low-carbon technology to harness renewable energy from the Sun. The current largest photovoltaic power station in the world is the Pavagada Solar Park, Karnataka, India with a generation capacity of 2050 MW.

The International Energy Agency projected in 2014 that under its “high renewables” scenario, by 2050, solar photovoltaics and concentrated solar power would contribute about 16 and 11 percent, respectively, of worldwide electricity consumption, and solar would be the world’s largest source of electricity. Most solar installations would be in China and India.[3] In 2019, solar power generated 2.7% of the world’s electricity, growing over 24% from the previous year. As of October 2020, the unsubsidised levelised cost of electricity for utility-scale solar power is around $36/MWh.

One issue that has often raised concerns is the use of cadmium (Cd), a toxic heavy metal that has the tendency to accumulate in ecological food chains. It is used as semiconductor component in CdTe solar cells and as a buffer layer for certain CIGS cells in the form of cadmium sulfide. The amount of cadmium used in thin-film solar cells is relatively small (5–10 g/m2) and with proper recycling and emission control techniques in place the cadmium emissions from module production can be almost zero.

Current PV technologies lead to cadmium emissions of 0.3–0.9 microgram/kWh over the whole life-cycle.[136] Most of these emissions arise through the use of coal power for the manufacturing of the modules, and coal and lignite combustion leads to much higher emissions of cadmium. Life-cycle cadmium emissions from coal is 3.1 microgram/kWh, lignite 6.2, and natural gas 0.2 microgram/kWh.

References

 

 

 

US Jobs Report June 2021: Payrolls Jump 850,000, Unemployment Rate at 5.9%

The pace of U.S. hiring accelerated in June, with payrolls increasing by the most in 10 months, suggesting firms are having greater success recruiting workers to keep pace with the economy’s reopening.

Nonfarm payrolls jumped by 850,000 last month, bolstered by strong job gains in leisure and hospitality, a Labor Department report showed Friday. The unemployment rate edged up to 5.9% because more people voluntarily left their jobs and the number of job seekers rose.

The median estimate in a Bloomberg survey of economists was for a 720,000 rise in June payrolls. “Things are picking up,” said Nick Bunker, an economist at the job-search company Indeed. “While labor supply may not be as responsive as some employers might like, they are adding jobs at an increasing rate.”

The gain in payrolls, while well above expectations, doesn’t markedly raise pressure on the Federal Reserve to pare monetary policy support for the economy. Even with the latest advance, U.S. payrolls are still 6.76 million below their pre-pandemic level.

Demand for labor remains robust as employers strive to keep pace with a firming economy, fueled by the lifting of restrictions on business and social activity, mass vaccinations and trillions of dollars in federal relief.

Read more: Black Men’s Labor Force Rises to Largest Ever Amid Recovery

At the same time, a limited supply of labor continues to beleaguer employers, with the number of Americans on payrolls still well below pre-pandemic levels.

Coronavirus concerns, child-care responsibilities and expanded unemployment benefits are all likely contributing to the record number of unfilled positions. Those factors should abate in the coming months though, supporting future hiring.

Wage growth is also picking up as businesses raise pay to attract candidates. The June jobs report showed a hefty 2.3% month-over-month increase in non-supervisory workers’ average hourly earnings in the leisure and hospitality industry. Overall average earnings rose 0.3% last month.

“The strength of our recovery is helping us flip the script,” Biden said in remarks Friday. “Instead of workers competing with each other for jobs that are scarce, employers are competing with each other to attract workers.”

The Labor Department’s figures showed a 343,000 increase in leisure and hospitality payrolls, a sector that’s taking longer to recover because of the pandemic.

Job growth last month was also bolstered by a 188,000 gain in government payrolls. State and local government education employment rose about 230,000, boosted by seasonal adjustments to offset the typical declines seen at the end of the school year.

Hiring was relatively broad-based in June, including other notable gains in business services and retail trade. However, construction payrolls dropped for a third straight month and manufacturing employment rose less than forecast.

“Most of the new jobs now being created are in sectors that were slammed by the pandemic, while companies in other industries are struggling to find available workers,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note.

Read More

The overall participation rate held steady and remained well short of pre-pandemic levels. The employment population ratio, or the share of the population that’s currently working, was also unchanged.

Digging Deeper

  • Average weekly hours decreased to 34.7 hours from 34.8
  • The participation rate for women age 25 to 54 rose by 0.4 percentage point; the rate among men in that age group also climbed
  • The number of Americans classified as long-term unemployed, or those who have been unemployed for 27 weeks or more, increased by the most since November
  • The U-6 rate, also known as the underemployment rate, fell to a pandemic low of 9.8%. The broad measure includes those who are employed part-time for economic reasons and those who have stopped looking for a job because they are discouraged about their job prospects

Stocks opened higher and Treasury securities fluctuated after the report.

 

By and

Source: US Jobs Report June 2021: Payrolls Jump 850,000, Unemployment Rate at 5.9% – Bloomberg

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Critics:

The labor force is the actual number of people available for work and is the sum of the employed and the unemployed. The U.S. labor force reached a high of 164.6 million persons in February 2020, just at the start of the COVID-19 pandemic in the United States. The U.S. labor force has risen each year since 1960, with the exception of the period following the Great Recession, when it remained below 2008 levels from 2009-2011.

The labor force participation rate, LFPR (or economic activity rate, EAR), is the ratio between the labor force and the overall size of their cohort (national population of the same age range). Much as in other countries in the West, the labor force participation rate in the U.S. increased significantly during the later half of the 20th century, largely because of women entering the workplace in increasing numbers. Labor force participation has declined steadily since 2000, primarily because of the aging and retirement of the Baby Boom generation.

Analyzing labor force participation trends in the prime working age (25-54) cohort helps separate the impact of an aging population from other demographic factors (e.g., gender, race, and education) and government policies. The Congressional Budget Office explained in 2018 that higher educational attainment is correlated with higher labor force participation for workers aged 25–54. Prime-aged men tend to be out of the labor force because of disability, while a key reason for women is caring for family members.

The Congressional Budget Office explained in 2018 higher educational attainment is correlated with higher labor force participation. Prime-aged men tend to be out of the labor force due to disability, while a key reason for women is caring for family members. To the extent an aging population requires the assistance of prime-aged family members at home, this also presents a downward pressure on this cohort’s participation.

See also

America’s Failure To Build Is Driving Home Prices Ever Higher

Some progressive groups oppose rezoning New York's wealthy Soho area to allow more housing

Another month, another explosive rise in home prices.  May’s median annual housing price rose 23.6%, a new monthly record.   Buyers are still buying, helped by low interest and mortgage rates.  But since housing construction hasn’t kept pace with demand and economic growth, it will take more housing production to reduce long-term pressure on prices.

The buying pressure in housing markets is setting records.  Although home sales fell slightly in May compared to April, houses aren’t sitting very long on the market.  According to the National Association of Realtors, total housing inventory is down 20.6% from a year ago.  Properties only last on the market for an average of 17 days, and 89% of sales in May “were on the market for less than a month.”

Given this high demand, we’d expect supply to respond.  Ronnie Walker at Goldman Sachs notes housing starts are rising, hitting their highest levels since 2006.  But it isn’t cooling the market off.  But Walker says despite these higher starts, “red-hot demand has brought the supply of homes available for sale down to the lowest level since the 1970s.”

Walker expects a “persistent supply-demand imbalance in the years ahead.”  New construction will come online, and more sellers eventually will enter the market, but his model foresees “home prices grow(ing) at double digit rates both this year and next.”

Tight future markets are confirmed by Harvard’s Joint Center for Housing Studies (JCHS).  In their 2021 report, these experts say “the supply of existing homes for sale has never been tighter,” and is at its lowest level since 1982.

So where are the houses?  What happened to supply and demand?  JCHS notes several reasons for underproduction, but the primary blame goes to restrictive local policies such as single-family zoning, minimum lot sizes, parking requirements, etc.  A 2018 survey of over 2700 communities found “93 percent imposed minimum lot sizes” with 67 percent requiring lots of at least one acre in size and sometimes more, many in suburban towns.

What about big cities?  Despite perceptions that there’s a lot of development in many cities, not much housing has been built in some.  Between 2010 and 2018, jobs in New York City increased by 22% “while the housing stock only increased four percent.”  Jobs in San Francisco and San Mateo counties rose by over 30% between 2010 and 2019, while new housing permits only rose by 7%.

There are strong political biases in these cities against more construction, but other liberal places are re-examining their housing policies, especially single-family zoning.  A New York Times 2019 analysis confirmed that many cities’ land area is dominated by single-family zoning —70% in Minneapolis, 75% in Los Angeles, 79% in Chicago, 81% in Seattle, and 94% in San Jose.  Combined with excessive parking requirements, zoning policy effectively takes land out of production while pushing its price sky-high and preventing multifamily options.

Cities’ anti-development policy means new housing is pushed further out in the metropolitan area, adding to suburban sprawl, longer commute times, and environmental damage.  Ironically, some progressive environmental groups have allied with anti-development forces, with the net result of fostering suburban sprawl.

In New York City, the left Sunrise Movement has joined with many other groups to oppose “upzoning” for higher density and more development in Manhattan’s Soho neighborhood, one of the wealthiest in the nation.  In contrast, Berkeley California, one of the most liberal cities in the nation, has voted to end single family zoning, persuaded by the argument that such policies result in racially segregated neighborhoods and lack of affordable housing for people of color.

But it isn’t just liberal cities that face this problem.  Even though red states like North Dakota, Utah, and Texas lead the nation in home building, a recent study found that only four of America’s 25 largest metropolitan areas “built enough homes to match local job growth.”  And much of that growth was in outlying suburbs, adding to sprawl and pollution.

Urban economist Ed Glaeser locates a good deal of the problem in the rising power of local citizen groups, especially existing homeowners.  Their housing investments often rise in value with scarcity, and they usually like the existing neighborhoods where they reside and don’t want new residents.

This creates an “insider/outsider” problem that limits housing. As Glaeser notes, current homeowners don’t “internalize the interests of those who live elsewhere and would want to come to the city…their political actions are more likely to exclude than to embrace.”  These anti-housing groups often are labelled “NIMBYs”, for “Not In My Back Yard.”

In response, so-called “YIMBYs” (Yes In My Back Yard) are pushing for policies such as relaxed zoning, allowing multi-family housing (at least duplexes to quadplexes) on single family lots, and allowing denser housing near mass transit stops (“TOD”, for “Transit Oriented Development.”).  They are having some success, but anti-development forces are deeply entrenched and politically powerful in many places around the country.

But would more development create not just housing, but add to affordable housing?  What about the impact on low-income and non-white families, who could face rising rents or displacement from gentrification while still not being able to buy a house?  In my next blog, we’ll look at the tangled racial history of housing development and home ownership. Unless renters and lower-income people can be mobilized to support development, NIMBY opposition to more housing will be hard to overcome.

Follow me on Twitter or LinkedIn.

I’m an economist at the New School’s Schwartz Center (https://www.economicpolicyresearch.org), currently writing a book for Columbia University Press on cities and inequality.  I have extensive public sector experience studying cities and states.  I’ve served as Executive Director of the Congressional Joint Economic Committee, Assistant Secretary of Labor for Policy, Deputy Commissioner for Policy and Research at New York State’s Department of Economic Development, and New York City Deputy Comptroller for Policy and Management.  I also worked as Director of Impact Assessment at the Ford Foundation.

Source: America’s Failure To Build Is Driving Home Prices Ever Higher

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Critics:

The United States housing bubble was a real estate bubble affecting over half of the U.S. states. It was the impetus for the subprime mortgage crisis. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case–Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is an important cause of the Great Recession in the United States.

Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble “the most significant risk to our economy”.

Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.

In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble. This was shared between the public sector and the private sector. Because of the large market share of Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (both of which are government-sponsored enterprises) as well as the Federal Housing Administration, they received a substantial share of government support, even though their mortgages were more conservatively underwritten and actually performed better than those of the private sector.

See also

15 Absorbing Construction Statistics to Know in 2020

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Do you often find yourself looking at the photos of marvelous buildings all over the world with amazement? Or have you ever visited some of them and felt inspired by the atmosphere they generated? Apart from being one of the most prosperous industries in the world, as the latest construction statistics show, construction is much more than merely putting the elements together to create a functional infrastructure. Construction sculpts the world around us and contributes to each person’s perception of unique architectural feats. If you’re curious to find out more, take a look at what our research has found about the industry’s modern-day impact on the global economy, certain construction worker profiles, and their safety at work.

Key Construction Statistics and Facts Reviewed

  • Back in the day, the word “skyscraper” referred to very tall men.
  • There are bridges that lead absolutely nowhere.
  • 20% of private industry worker fatalities occur within the construction industry, statistics show.
  • The commercial construction industry’s overall expenses decreased by 4% ($92 billion) in 2019.
  • America must build over 4.5 million new apartments by 2030 to meet demand.
  • Construction laborers are at high risk of multiple respiratory diseases.
  • Women make up 9.1% of all construction workers and employees in the industry.
  • 80% of construction companies struggle to find field workers.

Fun Construction Facts from All Over the Globe

1. Giza, Lincoln Cathedral, and Stralsund’s St. Mary’s were each, at one point in time, the world’s tallest building.

(The Lincolnite)

The Great Pyramid of Giza held the title of world’s tallest building for 4 millennia prior to being replaced by England’s Lincoln Cathedral in 1311. This structure’s main spire reached 525 feet. Its height was unsurpassed for nearly 250 years, until a severe storm in 1548. The central spire collapsed, making St. Mary’s Church in Stralsund the tallest building.

2. Some interesting facts about construction: it took the equivalent of a US town to build Burj Khalifa.

(Luxe Adventure Traveler)

As the tallest building in the world built by a human workforce (2,716.5 feet), it’s no wonder so many workers were engaged in this fabulous skyscraper’s construction. It took over 100,000 tons of concrete and 55,000 tons of steel. To erect the 164-floor building (one of which is underground), thousands of people were hired. At the busiest period of construction, over 12,000 people were actively involved.

3. Bridges are vital supporting structures, but did you know there are those that lead absolutely nowhere?

(Base Concrete)

This is one of the particularly fun facts about construction. The majority of bridges serve their purpose, overcoming geographical barriers in order to facilitate travel and the movement of goods. However, some of them simply haven’t been completed for ages, and others were installed as pieces of art. A well-known example is the Half-Bridge of Hope in Russia.

4.Today’s meaning of the word “skyscraper” is completely different from what it originally referred to.

(Construct Connect)

Here’s another of the interesting facts about architecture and construction—this one from the Oxford English Dictionary. Long before people began to call impressively tall buildings “skyscrapers” in 1882, the word was already in use. It referred to other things of outstanding height (and beings, too), such as cylinder hats, horses standing up on their back hooves, exceptionally tall men, people riding the old-fashioned high-wheelers, etc.

Construction Worker Stats & Facts

5. In 2018, construction labor shortage statistics showed that 80% of construction companies struggled to find construction site workers.

(Giatec Scientific)

Partially, the problem can be explained by the gradual loss of interest in skill-based jobs among the younger generations. Nowadays, suit-and-tie and healthcare careers are gaining more popularity, winning out over construction jobs. Furthermore, 32% of this industry’s current employee base belongs to the aging population (45-64 years old), according to 2018’s data.

6. In the case of women in construction, statistics reveal that female workers make up 9.1% of all US construction workers and employees.

(CNBC)

Generally, they earn an average 95.7% of what their male counterparts make, according to the National Association of Women in Construction. Comparatively, women across all industries make approximately 82% of what their male counterparts earn.

7. Women still encounter gender-based difficulties in the construction industry.

(The Undercover Recruiter)

The construction worker facts we reviewed suggest that these challenges include sexual harassment, a shortage of benefits, a pay gap, and social discrimination. Furthermore, construction equipment is still insufficiently adjusted to women, thus increasing the risk of them becoming injured. Also, women often don’t consider construction careers due to the overall lack of female role models.

8. Large-scale commercial construction statistics from 2019 indicate that there’s been a decrease in demand for big warehousing centers. 

(FMInet)

Since 2019, trade bargains have diminished, meaning the short-term necessities for warehousing items have decreased in number as well. However, there’s still a high demand for luxurious shopping centers, amusement parks and recreation facilities, temporary accommodation facilities, and business offices. Still, the overall commercial construction industry decreased by 4% ($92 billion) in 2019.

9. New home construction statistics indicate that America will need to build 4.6 million new apartments by 2030 in order to meet rising demand.

(NAAHQ)

A 2017 study by the National Apartment Association concluded that millions of new residential apartments will be needed over the following 10 years. The main reasons identified are the increasing number of young adults aged 18–34 who are postponing buying a home, the elderly opting to live in apartments (as compared to a house), and the influx of immigrants. In addition to the demand for new apartments, almost 12 million existing apartments will need remodeling.

10. Comparing national construction statistics, Chinese companies are still the global leader in the construction market in terms of revenue.

(Deloitte)

Chinese companies still hold the title of number one based on revenue, making up 41% of the market. Japan and South Korea, as well as the US, the UK, Spain, and France, are also among the dominant countries in the global construction market. However, China’s international company sales rate is lower than that of the mentioned countries.

Construction Safety Statistics and Facts

11. Over 20% of private-industry worker fatalities occur within the construction industry.

(OSHA)

In other words, one out of every five work-related deaths happens to a construction worker. But what is it that causes frequent construction-related fatalities? As per statistics, the main causes are the following: falls, being hit by an object, electric shocks, and getting caught between objects. These four types of accidents are to blame for 58.6% of construction-related deaths.

12. According to construction accident statistics, approximately 150,000 construction site accidents result in injuries each year.

(Murphy Law Office)

As previously stated, falls make up the largest portion of all construction workers’ accidents, but accidents involving various kinds of contact with equipment as a cause aren’t rare either. Those most likely to have an accident on a construction site are workers aged 25–34. Additionally, the body parts most commonly affected by such injuries involve the back, spine, and torso.

(Health and Safety Executive)

Moreover, 37% of the injured workers required more than three days off for recovery, while it took more than seven days for up to 28%. Around 2.4% of the workers in this sector suffered an injury. This means the only industry that has surpassed construction in non-fatal injuries is the agriculture, forestry & fishing industry, with a rate of 4.1%.

14. In the UK from 2016 to 2017, 7% of those who were killed at work died because an object collapsed on a construction site.

(The NBS)

Construction industry statistics show that workers operating around excavations are more endangered than others because the risk of objects collapsing is higher. Even when a small or light object (such as tools or debris) falls from above, it accelerates at a rate of 22 mph, thus still risking severe injury. These accidents also include wall and roof collapses, which are especially likely to happen during demolition or renovation.

15. Construction statistics show that construction laborers are at high risk of multiple respiratory diseases.

(Health and Safety Executive)

The majority of construction-related activities involve exposure to harmful circumstances affecting respiratory organs, and if workplace safety isn’t taken care of in advance, the effects are hazardous. Most frequently, construction workers suffer from asbestos-related conditions, such as mesothelioma, severe lung scarring, pleural thickening, COPD, and occupational asthma.

FAQ

How many people are employed by the construction industry?

According to the 2018 estimates by the Bureau of Labor Statistics, the number of people employed in the construction industry reached 7.29 million in the US. However, this number may be higher. The calculated growth rate of construction employees in the Construction Industry Group is 2.74% (more specifically, the number leaped from 8.82 million employees in 2017 to 9.07 million employees in 2018).

(Data USA)

Is the construction industry booming?

Yes, it is. Along with the furniture industry, it’s one of the most profitable ones. As per economists’ predictions, although the global expansion of the construction industry slowed down to a rate of 2.6% in 2019 (this especially applies to the worlds’ strongest economies, like that of Australia and the US), the rate of growth in 2020 could reach 3.1%. However, there are certain social and geopolitical circumstances that could subvert the estimates, such as the current COVID-19 pandemic or the trade war between the US and China.

(Global Data)

What is the largest construction company in the United States?

Currently, this is Bechtel Group Inc., a global construction company based in San Francisco, California. It was among the two American construction companies to rank among the 15 world’s biggest construction contractors in 2014, with the rest of these companies mostly coming from Europe and China. One of Bechtel’s most significant projects is the Hoover Dam. The company’s total revenue in 2018 exceeded $25 billion.

(Zippia)

What state has the most construction work?

Most states have faced an increase in demand for construction employees. However, according to 2018’s BLS data, the top three states with the highest rates of construction employment are West Virginia, New Mexico, and Wyoming. However, the states with the most construction work are Texas, California, and Florida in terms of the total number of jobs.

(BLS)

How big is the construction industry?

Construction is a major contributor to the US economy. 7 million construction employees work for more than 680,000 employers, and together they create structures and buildings valued at close to $1.3 trillion every year. Furthermore, this industry represents some of the biggest customers for manufacturing, mining, and a variety of other services, according to the construction statistics.

(AGC)

Conclusion

The powerful construction industry is most actively involved in shaping the landscape of the modern world’s future. Although it has been affected by many challenges, it continues to flourish—despite the ever-changing socio-economic circumstances, as well as alterations in resource and material availability, etc.

Even though contractors predict more challenging circumstances due to the current global pandemic, according to what our construction statistics indicate, construction is still booming and offering plenty of opportunities for prosperous careers for both men and women.

By Sanela Pauc

Sources:

Source: https://comfyliving.net

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Beaches Getting Sand to Replace What Irma Washed Away – Larry Barszewski

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More sand is on the way for beaches in south Broward County that took a hit from Hurricane Irma last year. The U.S. Army Corps of Engineers plans to spend $9.7 million in January to truck in and replenish about 123,000 cubic yards of sand — enough to cover a football field with sand 57 feet high — lost during the storm on beaches south of Port Everglades. The project in January won’t make the south county beaches wider, but it will put more sand on dry sand areas away from the water…….

Read more: http://www.sun-sentinel.com/local/broward/fl-ne-south-broward-beaches-more-sand-20180918-story.html

 

 

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