Question

3. What are six of the occupations that are involved in this sector of the economy? That is, when there is a 20% drop in this activity, residential construction and sales volume, which workers lose their jobs? Why?

4. What could our government do to help cause a rise in residential construction and sales volume in our economy? Please list and discuss three actions that our government could take, at least in theory. What are the forces that may cause a rise or a drop in this area of the economy in the next 12 to 24 months?

Answer 1

3) The workers that will lose their jobs with fall in the residential construction and sales are:

• Construction superintendent
• Project engineer
• Construction estimator
• Carpenter
• Interior designer
• Pipe fitter

All these workers are related with the construction be it for residential purposes or for commercial purposes. Superintendent, engineer, estimator are needed to check if the construction is going on the right way and costs are estimated properly to make budgeting easy. Interior designers are needed to properly design the houses. Carpenters and pipe fitter are also needed to make a house. So if the construction activity dips, all these workers will lose their jobs.

4) Steps that government can take to rise residential construction and sales are:

• Government can reduce the interest rate of loan so that it becomes easy to borrow money for investment purposes or for buying the house.
• Government can invest in building up of infrastructure like roads in the areas of residential construction which will attract more investment and increase sales of houses.
• Government can invest in technology which will help to improve the productivity of labour of construction to rise this sector.

Forces which can lead to rise or fall in this sector are:

• Level of interest rate which can impact the borrowing level. Lower interest rates will lead to increase in sales and investment both.
• Technology needed for development of this sector. High quality technology will lead to more growth and cut in costs
• Training of human capital will also impact productivity of this sector.