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Alex’s Economics Blog

Alex Carrick is Chief Economist for CanaData, Reed Construction Data’s Canadian economic forecasting and statistical service. CanaData’s products include a monthly forecast newsletter, cost indices, regional and custom starts reports and an annual conference. He is a frequent contributor to the Daily Commercial News and the Journal of Commerce. He has delivered presentations throughout North America on the Canadian, United States and world construction outlooks. Mr. Carrick has been with Reed Construction Data Canada since 1985. Previously, he was Secretary-Treasurer and Economist for the Canadian Institute of Steel Construction for thirteen years. A trusted and often-quoted source for the media, Mr. Carrick holds a Masters in Economics.
Read more of Mr. Carrick's economic analysis at the Economic Outlook special section and Canadian Construction Market News. Read his light-hearted reflections on life on his personal blog.

March 9, 2010

A dozen incredible measurement sets on Canada’s changing ethnic mix

It’s a good idea to keep checking the Statistics Canada web site. You never know what you’ll find. Included among today’s releases by the national statistical agency is a 78-page report entitled Projections of the Diversity of the Canadian Population. This compares the likely ethno-cultural make-up of the country in 2031 versus what it was in 2006. The data is fascinating.

March 3, 2010

How fragile is recovery around the world?

The big question in the U.S. concerns whether or not a double dip recession is in the cards. The main contributors to the speculation are the jobless nature of the recovery so far and both weak new home sales and low home prices. These several problems spill over into many other areas.

February 25, 2010

The world financial crisis goes into extra innings

Economic statistics, tables and graphs aren’t just abstract concepts. Sometimes what they reveal results in policies that spill over into the streets. Such is the case in some countries in Europe.

February 18, 2010

Despite recovery, many of the world’s governments are immersed in financial turmoil

Several national governments around the world are in severe financial binds, with actual and projected budgetary deficits in double digits as percentages of gross domestic product. Included are the United States, Britain, Spain and Greece. If not fiscal deficits that are the problem, then it’s incipient inflation. How this will play out in interest and exchange rates is anybody’s guess.

February 11, 2010

Government moves in the housing sector and the in-your-face green movement

There are some interesting aspects to the recent pick-up in housing starts in Canada. It is largely due to the strength in resale markets, which in turn is tied to record-low mortgage rates. The Bank of Canada is expected to begin raising interest rates by this summer at the latest. That may serve to slow down housing starts somewhat. The introduction of the blended or harmonized sales tax in Ontario and B.C. is another factor that may be hurrying up starts at the moment in anticipation of higher costs for home purchasers later this year. At the same time, there are other governmental actions that may have significant impacts on the housing market. What is particularly noteworthy is that they will act in opposite directions.

February 3, 2010

A review of some global economic and policy expectations for 2010

It’s always fun to get out the crystal ball and venture a look. Hidden among the swirling clouds are some half-revealed truths that can usually be interpreted in a number of ways. But the following is an attempt to condense some of the more important developments with a focus on what they will mean for the world and North American economies and government policies.

January 28, 2010

Increasing signs of world and U.S. economies getting back on track

There are increasing signs that the world and U.S. economies are getting back on track. One indicator is the subject matter in daily news briefs.

January 28, 2010

Synopsis of RCD’s webinar on the economic and construciton outlooks

The following are highlight observations from the Webinar hosted today by Reed Construction Data (RCD). Featured speakers were Ken Simonson (Associated General Contractors of America), Kermit Baker (American Institute of Architects) and Jim Haughey (RCD).

January 28, 2010

Synopsis of RCD’s webinar on the economic and construction outlooks

January 21, 2010

Why Canada’s inflation rate disappointed some analysts and the full circle argument

Apparently, many analysts were disappointed that Canada’s inflation rate wasn’t high enough in December 2009. The all-items Consumer Price Index (CPI) was +1.3% year over year. The Bank of Canada’s target is +2.0%. The shortfall took some of the luster off the loonie and stock prices. But let’s not be in too big a hurry to see inflation climb in Canada. On balance, the BOC should not be afraid to raise interest rates before the Fed.

January 14, 2010

Ontario, B.C. and Alberta suffered severe labour market dislocations in 2009

Nearly 60% of the jobs lost in Canada in 2009 were in Ontario. To understand how severe this was, consider that Ontario’s labour force makes up slightly less than 40% of the national total. Out of the national job loss figure of 240,000, Ontario’s portion was 142,000. The year-over-year decline in employment in the province at -2.1% was the most extreme in the country and higher than the national average rate of -1.4%. The manufacturing sector bore most of the pain. The other two provinces that struggled the most to provide jobs were B.C. and Alberta.

January 7, 2010

The Trend of Canada’s Construction Starts in 2009 will Reverse Somewhat in 2010

The trend in construction starts in 2009 became clear early on and stayed the same as the year unfolded. Commercial building starts in the nation as a whole, according to CanaData, ended 2009 down nearly 50% in square footage versus all of 2008. Industrial starts dropped by three-quarters or -75%. Those two categories mainly depend on private sector investment. On the public sector side, institutional starts were down only 8%. And engineering starts were lower by only a small degree, -2% in dollar volume. However, this fresh new year will see a reversal of some of the trends from 2009.

December 18, 2009

CanaData starts in November included more privately-funded projects

CanaData’s starts statistics still looked barren through November. In square footage, commercial work was about half of what it was last year and industrial starts were only about one-quarter as high. It is clear that the two segments of the overall market that have held up better are in the public spending area – institutional and engineering.

December 9, 2009

The Economic Outlook for Toronto - Thinking Ahead to the Pan-Am Games

Yes, the Pan American Games will provide a significant boost for Toronto's economy. And 2015 is not that far away. This city needs something to get charged up about.

November 30, 2009

Canada’s third-quarter GDP growth turns mildly positive, but the struggle continues

It’s no longer life or death, but the Canadian economy continues to struggle. Statistics Canada released September and third quarter real gross domestic product (GDP) results on the last day of November. The month-to-month gain (not annualized) was +0.4%. The quarter-over-quarter gain (annualized) was also +0.4%. The quarter-over-quarter change was the first increase since the third quarter of 2008. It marks the end of the recession after three straight quarterly declines.

November 19, 2009

Starts remain low in CanaData’s latest forecasts, but there are signs of a pickup in optimism

CanaData’s forecast for total non-residential building construction starts nation-wide in 2009 now stands at 45.5 million square feet. This is about half of what it was two years ago in 2007 at 92.1 million. Last year was the first year of decline in the recession and the square footage of ICI starts (industrial, commercial and institutional) dropped to 75.5 million. The new slightly revised forecasts for 2010 and 2011 are for 56.0 million and 70.0 million square feet respectively.

November 11, 2009

CanaData’s October Construction Starts and Remembering Planned Obsolescence with Some Fondness

Industrial starts have become a non-factor in overall construction activity in Canada. They are going to amount to less than two million square feet in 2009, which is less than one good-sized shopping mall when times are better. How did industrial work come to such a sorry pass?

November 4, 2009

It’s a World of Opportunities as Economic Thoughts Turn to Recovery

The current mantra about the world economy seems to be that no one can take recovery for granted until the private sector replaces the public sector as the source of new demand. Central bankers, with few exceptions (e.g., Australia) are unlikely to alter their extraordinarily low interest rate policies until unemployment stops rising and the need for government stimulus money winds down. A thorough read of the daily business news, however, reveals that a great deal more is going on behind the scenes and that some business owners and managers are attempting to get out front of events while tremendous opportunities are still available.

October 28, 2009

Housing markets in Canada and U.S. tell complex stories

The housing markets in Canada and the U.S. continue to tell complex stories. Canada’s housing starts have been gradually creeping up since their April low. For 2009 as a whole, they are expected to be 140,000 units, rising to 160,000 in 2010, then 180,000 in 2011. The stock of unsold single-family homes in Canada is adjusting downward in an appropriate fashion, but the unsold stock of multiples is still climbing. In the U.S., the monthly annualized starts number is just under 600,000 units. Similar to Canada, the improvement next year will be only gradual, to 700,000 units, with a further modest gain in 2011 to 900,000.

October 22, 2009

The Current Grace Period for Construction Costs will Expire within Six Months

Several factors are conspiring to give construction costs a lift. This won’t happen overnight. But it does mean that sometime in the next six months, the current grace period will expire.

October 15, 2009

What Happens when the Loonie shoots past Parity with the Greenback?

Once again, the Canadian dollar is flirting with U.S. dollar parity. What will be the consequences if the loonie shoots past parity with the greenback? How much worse (or better) will things get?

October 8, 2009

More Variety in CanaData’s September Starts Statistics

For the first time in many months, there is a little more variety of projects in CanaData’s Top 10 list of construction starts in September. Mixed in with the institutional and engineering projects which have been dominant since April are a couple of multi-unit residential projects in Quebec City and a commercial project in Alberta. The latter is the Telus World of Science building in Calgary. As for Quebec, its experience of the recession has not been as severe as for many other provinces.

September 30, 2009

Take Reports of Alberta’s Economic Demise with a Grain of Salt

Take all the reports about the economic demise of Alberta with a grain of salt. In the latest quarter, the fastest population growth rate among all provinces in the country was recorded there (+0.59%), according to the latest demographic report from Statistics Canada. Second place went to Prince Edward Island (+0.53%). The territory of Nunavut actually outpaced all regions (+0.68%). The total Canada rate of increase was +0.36% (Q2/Q1).

September 22, 2009

Questions to be addressed at CanaData’s 24th Annual Construction Industry Forecasts Conference

CanaData’s 24th annual Construction Industry Forecasts Conference will be held on Thursday, September 24th, at the Liberty Grand in Toronto. The following are some key questions and themes that will be addressed and dealt with during the day by the high-powered roster of speakers. Delegate networking will also be an important source of market intelligence.

September 16, 2009

Capacity Utilization Rates Capture the Hard Times and Point to Weak Construction

Many of the problems with the recessionary Canadian economy are revealed in the latest (Q2 09) capacity utilization numbers from Statistics Canada. Manufacturing in the second quarter of this year was operating at less than two-thirds of its capacity. It was the same case for forestry and logging. The mining sector was at only half of its capacity. Total Canadian industry in second-quarter 2009 had a capacity utilization rate of just 67.4%.

September 16, 2009

Capacity Utilization Rates Capture the Hard Times and Point to Weak Construction

September 9, 2009

CanaData’s Construction Starts Statistics are -49% in Square Feet through August

The pattern of construction starts in Canada in August 2009 was a continuation of what it has been throughout most of this year. A trend graph clearly points out what has been happening in the market-place. Non-residential building starts, which are mainly privately-financed, are experiencing a long slide that began early in 2008. Engineering starts, which are mainly publicly-funded, have been moving upward since the midway point of last year, although they appear to have leveled off over the past several months.

September 1, 2009

Overhang and Aftermath - Canada’s Construction Outlook, 2010 to 2012

The United States has been in recession since the final quarter of 2007. Canada has been experiencing economic weakness since the fall of last year. Both economies are expected to turn in positive growth in third-quarter 2009. Canada, in June, had its first month-to-month gain in gross domestic product (GDP) in a year. The economy is on the mend. But there are two words that set the tone for the economic future – overhang and aftermath.

August 26, 2009

The Growing Power of Social Networking Sites on the Internet

Social networking sites on the Internet may seem like a strange subject for a blog usually dedicated to construction economics, but please bear with me. There is relevance. One of the next big things in information technology or high-tech will be social networking sites. Yes, I know these have been around for a while and I may seem out of touch by only mentioning them now. However, they came to the greater consciousness of us all more emphatically during the aftermath of the election in Iran. We were getting our updates from citizens who were text messaging what was happening on the streets of Tehran to CNN. That was the most dramatic example of their usefulness. Here’s some background.

August 19, 2009

Institutional and Engineering Work sustain July Construction Starts in Canada

On a percentage change basis, CanaData’s year-to-date construction starts figures in July varied little from June. Total starts were -51% in square footage and -29% in dollars. The dollars have been sustained by engineering starts, which are +1% on a year-to-date basis, this year versus same period last year. Much of this has been thanks to government stimulus initiatives. The engineering or civil construction category is made up of projects, such as roads, bridges, sewer pipelines and watermains, where square footage is irrelevant. CanaData is a product line of Reed Construction Data.

August 13, 2009

Summer Review of Engineering Construction Outlook in Canada

CanaData’s engineering construction forecast now stands at $86.8 billion for 2009. This is -9.4% when compared with 2008’s $95.9 billion. The main reason for the decline is a cutback in spending by the energy sector in Alberta. Projects were put on hold as oil prices fell and producers got frustrated with input shortages and high costs. With oil prices on the mend, projects are being reinstated and new ones initiated, including on the East Coast. This sector is likely to be an add-on to government infrastructure work in 2010, returning overall engineering construction dollars to about $94.7 billion (+9.0%), then rising to $103.7 billion (+9.5%) in 2011.

August 11, 2009

Summer Review of Non-residential Building Construction Outlook in Canada

Privately-funded non-residential building construction in Canada is in a deep trough at this time. The only exception is institutional work, where governments are going ahead with school projects and health care/hospital work. Office buildings, retail projects and industrial plants all have their own reasons for a lack of construction job-site action at the moment.

August 5, 2009

Summer Review of the Residential Construction Outlook in Canada

The multi-country stimulus with respect to infrastructure is having an impact on economies in general and is spilling over into residential construction. China is increasing its money supply at a rapid pace to fund its spending programs. Lending in China is up by double in the first half of this year versus the same period last year. Chinese citizens are jumping into the housing market. A surge in housing construction is underway. China’s housing recovery is corresponding with the timing of an upturn in the U.S. housing market.

July 28, 2009

A New Version of Cyclical Instability in Construction

The construction industry has long been known for its cyclical instability. Construction activity has often had the widest amplitudes from peak to trough of any major sector in the economy. A new version of cyclical instability seems to be emerging. The old version was based on simultaneous boom and bust conditions in private and public sector investment spending. It was often the case that a cyclical decline in private sector work was met by a flurry of government projects to fill the gap. However, such government projects were never initiated quickly enough. They came on stream at the same time as private sector work was recovering. This compounded demands on labor and material. Where the new cyclical instability is coming from is the international scope of economic activity.

July 23, 2009

Canadian Construction Material Cost Changes Diverge Widely (Part 2)

In yesterday’s blog entry, I talked about what has been happening, longer term and more recently, in terms of key construction material prices. I covered foundation and structural materials − sand and gravel, cement, ready-mix concrete, iron ore, concrete reinforcing bars and structural steel shapes. Today, let’s look at some other key inputs and some equipment and machinery items. This is important in terms of what governments can expect in the bidding process that will precede their infrastructure spending initiatives.

July 22, 2009

Canadian Construction Material Cost Changes Diverge Widely (Part 1)

Based on the Industrial Product Price Index (IPPI) series published by Statistics Canada, this report sets out what has been happening, over the longer term and more recently, for some key materials used in the construction process. The information is current as of May 2009.

July 16, 2009

Wide Differences between Home Resale Markets in Canada and the U.S.

One of the key positives for Canada in this recession has been the vast difference between home real estate markets here versus in the United States. In Canada, new home construction began to decline only in the fall of last year, after the stock market collapsed, credit dried up and net job losses began. In the United States, housing starts have been on a path downward for three years, beginning in early 2006. But the residential market is not all about starts. It is highly dependent on existing-home resale markets as well and this report looks at some of the key measure in both countries.

July 15, 2009

Where is the Economic and Construction Action in Canada’s Major Cities?

It is always fascinating to consider what is happening in the major cities across the country. Which cities are in the vanguard and which are bringing up the rear? This is all about the economy at the local level. It ties in to economic sectors that are expanding, contracting or staying at an even keel. It often means assessing the outlook for raw material markets, although in larger urban centres, services play major roles. Generally speaking, diversity is good because it helps cities weather economic storms better.

July 7, 2009

Recession Regardless, It’s an Exciting World in High-tech

No question, this is a tough patch for the economy. But not all sectors are performing poorly or have the same prospects. For example, the high-tech sector is exploding with creativity. Not that it hasn’t gone through this before. But this is not a potential dot.com bust kind of scenario. The changes that are coming flow out of technology that is well established and many of the biggest and most well-known companies are involved.

June 29, 2009

The Two Biggest Issues for the World Economy

I’m betting that Ben Bernanke, Mark Carney, Jean-Claude Trichet, Mervyn King and others of their ilk – heads of central banks in the U.S., Canada, Europe and England respectively − are having some sleepless nights these day. The global economy is sailing off into uncharted waters that are full of sea monsters and tempests, with compass readings that are no longer accurate and few comely mermaids to guide them.

June 25, 2009

Five More Questions from the CanaData Webinar on the Economic and Construction Outlooks

During CanaData’s webinar on the economic and construction outlooks on Tuesday, June 23rd, I was not able to get to all of the questions that were submitted by viewers and participants. Therefore, this blog entry takes a stab at dealing with a number of the questions that remained outstanding after the event concluded.

June 16, 2009

Canada’s Merchandise Trade, Key Export Markets and Construction Opportunities

Canada’s merchandise trade position fell into deficit again in April 2009. This was the third month of deficit in the last six months of awesomely weak trade numbers. Canada usually runs an annualized trade surplus of around $50 billion. It is no coincidence that the recession is coinciding with the nation’s poor performance on the trade front. What is needed for Canada to see an improvement in its trade position?

June 10, 2009

Construction Starts, Commodity Position Limits, Oil Prices and the Loonie

The first half of 2009 is almost complete and the pattern of Canada’s construction starts has not altered much since the beginning of the year. But change is in the works and the following looks at where some of the major pluses and minuses will arise.

June 4, 2009

The United States needs Canada

I have written before about the benefits of a joint currency and common market between the United States and Canada. Unique in the history of the U.S. and Canada, the former needs the latter to a greater degree than ever before, whether it knows it or not. Future investment plans and mega construction projects are hanging in the balance. The time may have finally come to bond further in ways that will help each of us realize our long-term goals.

June 1, 2009

Ontario’s Prosperity may depend on a Stronger-valued Loonie

This story turns conventional wisdom on its head. A lower-valued Canadian dollar is supposed to be good for Central Canada’s economy because it helps manufacturers make export sales to the U.S. and it reduces the incentive for Canadians to travel abroad. However, in the new economy that is emerging, a higher-valued Canadian dollar may actually benefit central Canada, and particularly Ontario, to a greater extent overall.

May 27, 2009

Due to the Recession, Electric Power Markets in Ontario and Québec are in a Strange Space

The recession is having impacts on construction in ways that may not, at first, be readily apparent. For example, electric power usage in North America is currently in what might be termed a brief hiatus. Longer-term, it is hard to image that the need for electricity can be anything but expansive. This will be particularly true for power that can be generated in an environmentally friendly way. However, in the short-term, with raw materials production and manufacturing in recessionary decline, power usage has dropped.

May 21, 2009

Ten Key Differences between the Current Recession and the Great Depression

There are many ways in which the current recession differs from the Great Depression of the 1930s. Ten key points of variation can be separated into four socio-economic categories.

May 12, 2009

Obama Nation or Abomination? - The Two Polarities in U.S. Politics

I could not resist the headline to this article. Maybe it has been used before by someone else. But it came to me while thinking about some of the top U.S. news programs. Apparently you are either for Barack Obama or very much against him. The U.S. will either prosper as the new Obama Nation, which involves more government intervention, or it will become an abomination as socialist policies lead to rapid decline.

May 7, 2009

CanaData’s Construction Starts are Depressed, But a Familiar Pattern is Emerging

CanaData’s construction starts statistics through April 2009 remain quite depressed. Total square footage in all categories of construction is -52% year to date versus the first four months of last year. The dollar volume of starts is -30%. That being said, however, an interesting pattern has emerged within the type-of-structure categories and it shows up most readily in the Top 10 starts list for the month. Nine of the top 10 construction project starts in April were either engineering or institutional work.

May 1, 2009

Demography in Canada and the Swine Flu Pandemic

In my previous blog entry, I reviewed many of the regional economic developments in Canada. Today, let’s look at the latest demographic report from Statistics Canada. Quite often, demographic shifts are a consequence of what has been happening on the economic front. Here are some of the more significant developments for the nation and the regions as reported by Statistics Canada for the fourth-quarter of 2008.

April 30, 2009

Twists and Turns in Provincial GDP Growth

This recession is taking some interesting twists and turns at the regional level. Statistics Canada has just published Gross Domestic Product (GDP) figures for the provinces, 2008 versus 2007. This report takes those numbers and looks forward through 2009 and beyond.

April 27, 2009

A North American Common Market and Common Currency

This blog entry is a little more speculative than most, with a longer-term time horizon. It looks further down the road. Sometime, not tomorrow, not even five or ten years from now, but eventually, there are circumstances under which it will be just about inevitable that Canada, the United States and Mexico will combine as one seamless market with a common currency. The set of conditions taking us in that direction are as follows.

April 22, 2009

2009 Investment Spending Intentions by Canadian Business Owners and Government Agencies

There are lots of interesting numbers from Statistics Canada’s latest survey of owners concerning their investment spending plans. This information is published in a report entitled Private and Public Investment in Canada, Intentions (catalogue number 61-205-X). The PPI survey is how it is often referred to in its shortened form.

April 17, 2009

Major Issues Facing Canada’s Construction Industry to the End of this Year

The following is a compendium of major issues for construction in Canada out to the end of 2009. Market forces are a swirling mix of demand, supply, price, regional, country-wide and international factors.

April 17, 2009

Major Issues Facing Canada’s Construction Industry to the End of this Year

April 12, 2009

The Economic Crisis Six Months Later and the Role of Leadership

Is President Obama taking on too much? Yes, but this is a complex issue with nuanced levels of significance. Never mind foreign trouble spots like Afghanistan, North Korea and the Israeli-Palestinian conflict. And set aside the issue of expanding health care for the moment. Let’s just look at the economy.

April 7, 2009

Private Non-residential Construction Starts in Canada Sink Rapidly in First Quarter

Through the first quarter of 2009, non-residential construction starts in Canada are headed significantly downward. This is in keeping with the latest revision to CanaData’s forecast which is calling for total non-residential building starts this year, at 54.0 million square feet, to be the lowest in the history of the series, dating back to 1970. First-quarter regional highlights and low points are also examined in this report.

April 3, 2009

The U.S. Labor Market, Problems in the Auto Sector and the Construction Investment Climate

The U.S. jobs picture continued to deteriorate in the latest month. What is just as disturbing is that the downward sloping employment curve is not showing any signs of flattening out yet. Exceptionally high initial jobless gave advance warning that this might be the case. Nevertheless, it is upsetting to see that total job losses in the U.S. now exceed five million since the month-to-month declines began in January 2008.

March 31, 2009

The G20 – A Diversity of Goals and Answers

In a time of global recession, the interests of the G20 nations are of particular importance. They define much of what will be happening in political and economic circles over the near and longer terms. As outlined in this report, three clear themes have emerged having to do with fiscal stimulus, greater regulation and expanding roles. Within these themes, there are different assessments of importance and weight. Versus the G7 and G8, the G20 marks a significant shift to global economic management.

March 27, 2009

The Ontario Provincial Budget − Mobilizing on the Infrastructure Front

Yesterday’s Ontario provincial budget contained measures to stimulate business investment, to lower corporate taxes and to reduce sales-tax administration charges. But the major initiative was in the area of infrastructure spending. This has been a consistent theme of governments around the world. Who knows if all this money will ever really be spent? To a considerable degree, Premier McGuinty, Prime Minister Stephen Harper and President Barack Obama are all trying to do the same thing, talk us out of this recession. This report also looks at some questionable aspects of the new proposed harmonized sales tax (HST) with respect to residential construction.

March 25, 2009

The World Reserve Currency Debate - Dollar, Euro, Yen or Yuan?

Currency markets may be in for a period of some turmoil. The Chinese and Japanese governments are becoming less enamored of holding large amounts of U.S. government debt. There are several reasons why China and Japan might worry about a decline in the value of the greenback that would depreciate the value of Treasury Bill holdings. This report examines why the greenback is at the top of the heap rather than the Euro and why some nations may start to lobby for wider usage of Special Drawing Rights.

March 23, 2009

The Canadian and U.S. Economies - Where do We Stand?

How do we know when recessions are ending? What are the signposts? When do we definitively know that things have turned around?

March 12, 2009

The World Financial Crisis, Phase Whatever − Eastern Bloc Countries Going Bankrupt

Haven’t heard enough yet about problems in the world economy? Here’s the latest. It’s not just individuals and companies that are going bankrupt. There are some whole countries that are sinking fast or just barely treading water. This is primarily in smaller emerging markets and the dynamics are discussed in this report.

March 10, 2009

How to Behave in the Recession and Two Sidebars on Gold Prices and Mortgage Rates

As an economist, I know that what is best for this current recessionary economy is that everybody who can afford to keep on spending continues to do so. However, the reality is that a different hunker-down mindset is taking over. Two-income families have to consider the possibility that they may soon become one-income and so on. The trend to more conservative courses of action is occurring against the backdrop of job losses, rising bankruptcies and creditors demanding payment. But not all is bleak. Those who are still employed are getting a break in several ways. Let’s take a look.