Housing, Unemployment, and Jon Fisher

News today of a record plunge in U.S. housing sales is sure to ignite conversation about the pace of economic recovery. What does this number mean for jobs and GDP? How soon before the U.S. recovers from this Great Recession?

To help answer these questions, we present a video featuring Jon Fisher at the Commonwealth Club from last year. Fisher is a Silicon Valley entrepreneur, author, adjunct professor, and former Oracle Corporation executive. In April 2008, Fisher predicted U.S. unemployment would rise to 9% by April 2009. He quite correctly has spotted the connection between housing and unemployment.



Today's report from the National Association of Realtors describes a 27.2 percent fall in existing home sales in July to 3.83 million units, low levels not seen since May 1995. Pair this data with August's 9.5% unemployment rate and it's clear that Fisher's smart thinking remains spot on. The graph below illustrates the connection, perhaps too well for the housing industry and those seeking employment.


Source: Jon Fisher, formerly of Oracle Corporation, and John Blevins, Microsoft Corp.