September 12, 2012MEDIA ALERT
WASHINGTON, DC – Fannie Mae’s Economic & Strategic Research Group today released a new edition of Housing Insights that investigates how suppressed job earnings are affecting the recovery of the economy. The paper examines changes in average and aggregate earnings during the Great Recession and subsequent recovery, investigates the extent to which changes in employment and average earnings within industries have affected overall earnings growth, and compares recent trends with prior business cycles.
Findings in the paper suggest that a gradual, sub-par economic expansion may remain likely, given that earnings are a primary force behind economic growth and that it may take years before housing activity rebounds to levels typically associated with robust construction employment gains.
Visit the Economic & Strategic Research site at www.fanniemae.com to read the full Fannie Mae Housing Insights Research Paper, as well as the FM Commentary from research authors Manhong Feng and Patrick Simmons, to learn more about the impact of job earnings on the economic recovery.