Job growth, or the lack thereof, is the talk of the town these days. And well it should be as unemployment in the U.S. currently stands somewhere around 10%. Basically that means that one out of ten people who are seeking work are unable to find it. Remember that this number does not include those individuals that have given up looking, or groups like teenagers who are only able to work part time. Even as our economy slowly begins to emerge from this severe recession, it’s hard to fathom just where we are going to put these roughly 15 million people back to work.

Let’s start with where the jobs won’t be. The first sector is housing. The housing sector is significant because this industry acts as a catalyst for so many others. Consider the architects and numerous city officials that plan the infrastructure for our new communities. Then you have the industries that supply things like lumber, glass, copper and all the other building materials that are required. Add the various building trades that do the actual construction. And don’t forget all the ancillary businesses such as home inspectors, home appraisers, furniture stores, landscaping companies, etc.

The dramatic slowdown in housing in turn greatly affects the financial services sector. That’s because the number of mortgage brokers and real estate professionals rise and fall in tandem with the number of homes that are sold. But unfortunately housing isn’t the financial sector’s only problem. Financial service companies were also whacked by the crash in the stock market. Some of our major brokerage firms disappeared while many others were forced to initiate massive layoffs as stock prices fell. Furthermore, an alarming number of smaller banks were either swallowed up or simply went out of business as loan defaults quickly rose and the general economy fell apart.

The fall in real estate and stock prices has had a profound effect on the consumer. As a result, retailers ranging from automakers to department stores have sharply reduced their headcount. The near term outlook for hiring in the retail sector is weak as the American consumer reigns in spending in order to reduce debt and rebuild their retirement accounts. Unfortunately, it will prove difficult to get our economy moving again without the help of the American consumer as he represents over two thirds our nation’s GDP. But spending isn’t likely to pick up with so many people out of work. It’s easy to see why full employment is key to sustainable economic growth. Next week we’ll explore areas where we might put some of these 15 million individuals back to work.