Even with the Federal Reserve decreasing their rate hike to a quarter of a percent in this week’s meeting, the tone was that they were going to stick to the principle that a weaker labor market is necessary in order to combat inflation. Inflation seems to be slowing, but the decrease is mostly due to the change in energy and household expenses rather, and unemployment has remained low. The central bank’s strategy to aggressively yank up interest rates has already cooled the economy, and now we are seeing the impact leaching into the real estate sector.
The real estate industry will often thrive during recessions, but the people I talked to for this story told a wildly different story. The raising rates and stubbornly high prices have lowered deal volume, leaving many firms without much work and a need to trim expenses. These slower conditions have spurred a number of layoffs by property firms but, paradoxically, have also created a new market for experienced freelance work.
A 2022 report from the freelancing platform Upwork found that the proportion of freelancers in the U.S. workforce has risen to an all-time high since the company began tracking the percentage of American freelancers in 2014. Last year, 60 million Americans engaged in freelance work, generating $1.35 trillion in annual revenues for the American economy–a rise of $50 billion from 2021. According to the freelance job site, it amounts to 39 percent of the workforce, an increase of 3 percent from 2021. Additionally, U.S.
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