The real estate crash hurts the people the most – from the level of unemployment
In recent years, the real estate industry has shown a development trend that cannot be ignored and has become an important support for the economic growth of the mainland. However, there are fears that in the event of a real estate crash, ordinary people will be the main victims. How so? In short, it's because unemployment has skyrocketed, causing ordinary people to lose their jobs and income, to the point where even food and clothing are a problem.
First, let's look at the immediate impact of the housing crash on employment. The real estate industry is a huge industrial chain, including construction, decoration, sales and other links, absorbing a large number of labor employment. After the collapse of the real estate sector, it will be difficult for these links to maintain their original operating status due to the sharp drop in demand. Construction workers will face layoffs from work stoppages, designers and decorators will not be able to find new jobs to make ends meet, and salespeople will lose their pitches. With the bankruptcy and closure of enterprises, it is clear from these perspectives that there will be a significant reduction in job opportunities for ordinary people.
Second, rising unemployment inevitably brings more social problems. Ordinary people have no job and income, and it is difficult to maintain a normal standard of living, but life has to go on, where does food, clothing, shelter and transportation come from? This has to be worrying. Rising prices will also implicate industries other than the real estate industry, which will lead to higher commodity prices due to rising production costs, and increasing pressure on people's lives. Purchasing power has declined, sales have decreased, and companies have had to downsize or lay off employees, further expanding unemployment and forming a vicious circle. For the majority of ordinary people, without a stable source of income, they will face the dilemma of not being able to afford to eat.
In addition, a real estate crash can have a huge impact on the financial system. The real estate business is one of the main areas of investment for banks and other financial institutions. If real estate debt defaults emerge one after another, banks will face huge non-performing loans, and the capital chain will be threatened. In this case, banks will be more cautious in lending, which will make it more difficult for enterprises to borrow and hinder their capital turnover. What's more, banks are even at risk of bankruptcy, bringing about financial turmoil and causing turmoil in the financial system of the whole society.
In short, the damage of the real estate crash to the people is multifaceted, the most important of which is reflected in the skyrocketing unemployment rate. Ordinary people who lose their jobs and income will face one after another difficulties and will not be able to maintain a normal standard of living. At the same time, the collapse of the real estate sector will also put enormous pressure on the financial system, which in turn will trigger a financial turmoil. Therefore, it is necessary for us to pay close attention to the stable development of the real estate industry to avoid the huge harm caused by the real estate crash to the people. Only a stable real estate sector can ensure that people have enough jobs and income to maintain their basic food and clothing needs.
In conclusion, the damage of the collapse of the real estate market to the people cannot be ignored. The soaring unemployment rate will put people in a difficult situation to make their livelihoods, related industries will also be affected, financial markets may be in crisis, and social security will also be seriously affected. Therefore, we need to attach great importance to the stable development of the real estate market, and at the same time strengthen the development of other industries to alleviate the over-dependence on the real estate industry and create a more stable living environment for the people.