Will the housing rebound crush the job market?

By  June 4, 2013: 10:31 AM ET

A new study points to higher homeownership as the reason the unemployed aren’t finding work.

FORTUNE — For the past few years, economists have been waiting for the housing market to rebound so the job market can finally — crash? Wait, no. It’s the opposite. Right?

On Friday, we’ll get the latest look at how the job market is doing. Hiring is improving, but the unemployment rate has stayed stubbornly high. The go-to explanation among economists has been the weak housing market. Where are all those construction workers going to find work? Nursing? (That’s actually a pretty good idea.)

Housing prices are jumping again, and some people are even saying there’s a new bubble.We’ve pointed out you shouldn’t expect the economy to come roaring back just because the housing market is. But two economists are taking an even more extreme stance: that a good real estate market, where more people buy houses instead of rent, will throw more people out of work.

 

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