There is also a relative increase of unemployed people. During an event of a recession, companies tend to release workers due to low production demand. Low production demand means lesser income for the company owners. Companies and firms are then obliged to release employees to reach the target income. For the last seven years, unemployment has been rising steadfast in the United States. Overall employment, which is still high is historical terms, is declining since the start of 2008.
So how can ordinary people foresee recession?
AOL listed some interesting real life indicators that we are experiencing economic recession. People are stealing not only the whole car but different car parts from vehicles in parking lots. An example is a catalytic converter, which helps the car’s emissions. Meanwhile, inside retail stores, lesser people are shopping for merchandises. They are now opting for wholesale store membership.
Personal and family affairs, like weddings, are also being regulated in terms of guests and food. While corporations are cutting back on country club memberships and out of town travels.
Car companies are having difficulties getting buyers even with lots of incentives. Suddenly, the most popular restaurants in town does not have any waiting list at all. Small and local business are closing because they can’t keep up with the expenditure.
There can be countless ways of figuring out if a nation is suffering from a setback like an economic recession. But if these signs can be immediately detected and can give us a hint on our economic and financial future, then we should be better learn how to read the signs. Or we might not have the future.