The four states hit the hardest by the housing bust; Arizona, California, Florida and Nevada, have seen job growth pick up noticeably in recent months. This increase fairs well for the nation's employment picture. All four states are hot spots for tourism and retirement getaways. As the housing crisis eases, they are benefiting, along with help from the increase of traveling among Americans, and the flow of retirees to Sun Belt states.
Before all these improvements, the states were a huge drag on the job market. Now they're contributing to the growth. From August through January, the rate of job gains in three of the four states equaled or exceeded the U.S. overall.
The sand states' rebound is good news because they have the potential to power U.S. job growth. With their higher than national average in leisure and hospitality employment, as vacationers flock to Florida beaches, Las Vegas casinos, and resorts in Arizona, the sand states are looking promising. Also all the Americans who put off retirement are now retreating to the Sun Belt once again.
This increase in job growth shows how connected every market is. A shift in the population causes an outward shift in employment. All of these factors that affect supply and the demand connect to each other causing the overall increase in demand for labor reducing the unemployment and pulling the Sand States out of the terrible state they were in.
It is interesting to think about population growth (and movement between states) on markets like housing. It affects both demand and supply. Plus, while places like Arizona build new houses areas like Olean have vacant houses and tear them down.
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