Total Employment Growth Rate

0,006 0,004 0,002 0 -0,002 -0,004 -0,006 -0,008 Time(Jan 1990-Nov 2010) 0 50 100 150 200 250 300 Total Employment Growth Rate

Construction Growth Rate

0,02 0,015 0,01 0,005 0 -0,005 0 -0,01 -0,015 -0,02 -0,025 Time(Jan 1990-Nov 2010) 50 100 150 200 250 300 Construction Growth Rate

Durable Goods Growth Rate

0,02 0,015 0,01 0,005 0 -0,005 0 -0,01 -0,015 -0,02 -0,025 -0,03

50

100

150

200

250

300

Durable Goods Growth Rate

Time(Jan 1990-Nov 2010)

Non-Durable Goods Growth Rate

0,006 0,004 0,002 0 -0,002 0 -0,004 -0,006 -0,008 -0,01 -0,012 -0,014

50

100

150

200

250

300 Non-Durable Goods Growth Rate

Time(Jan 1990-Nov 2010)

Retail Trade Growth Rate

0,008 0,006 0,004 0,002 0 -0,002 0 -0,004 -0,006 -0,008 -0,01 Time(Jan 1990-Nov 2010) 50 100 150 200 250 300 Retail Trade Growth Rate

Transportation Growth Rate

0,06 0,05 0,04 0,03 0,02 0,01 0 -0,01 0 -0,02 -0,03 -0,04 -0,05

50

100

150

200

250

300

Transportation Growth Rate

Time(Jan 1990-Nov 2010)

Finance Growth Rate

0,006 0,004 0,002 0 -0,002 -0,004 -0,006 -0,008 Time(Jan 1990-Nov 2010) 0 50 100 150 200 250 300 Finance Growth Rate

Education Growth Rate

0,025 0,02 0,015 0,01 0,005 0 -0,005 -0,01 -0,015 Time(Jan 1990-Nov 2010) 0 50 100 150 200 250 300 Education Growth Rate

Health Growth Rate

0,006 0,005 0,004 0,003 0,002 0,001 0 -0,001 0 50 100 150 200 250 300 Time(Jan 1990-Nov 2010) Health Growth Rate

Leisure and Hospitality Growth Rate

0,014 0,012 0,01 0,008 0,006 0,004 0,002 0 -0,002 0 -0,004 -0,006 -0,008

Leisure and Hospitality Growth Rate 50 100 150 200 250 300

Time(Jan 1990-Nov 2010)

Information Growth Rate

0,03 0,02 0,01 0 0 -0,01 -0,02 -0,03 Time(Jan 1990-Nov 2010) 50 100 150 200 250 300 Information Growth Rate

Correlation of Growth Rates Construction 0.798947575 Durable Goods Non Durable Goods Retail Trade Transportation Finance Education Health Leisure and Hospitality Information 0.783729815 0.667699954 0.790453769 0.514650456 0.619322663 0.209759138 0.096328717 0.606810168 0.58441696

Correlation of Level Construction 0.933047506 Durable Goods 0.477202654 Non Durable Goods -0.79255078 Retail Trade 0.975832285 Transportation 0.988972592 Finance 0.975206957 Education 0.919898696 Health 0.899426737 Leisure and Hospitality 0.966510676 Information 0.626852612 Correlation Level Least to Highest Non Durable Goods -0.79255078 Durable Goods 0.477202654 Information 0.626852612 Health 0.899426737 Education 0.919898696 Construction 0.933047506 Leisure and Hospitality 0.966510676 Finance 0.975206957 Retail Trade 0.975832285 Transportation 0.988972592

Correlation Growth Rates Least to Highest Health Education Transportation Information Leisure and Hospitality Finance Non Durable Goods Durable Goods Retail Trade Construction

0.096328717 0.209759138 0.514650456 0.58441696 0.606810168 0.619322663 0.667699954 0.783729815 0.790453769 0.798947575

Minimum Growth Rates of Recessions Construction Durable Goods Non Durable Goods Retail Trade Transportation Finance Education Health Leisure and Hospitality Information

Jul-90 -0.014860313 -0.011367907 -0.003751262 -0.005783885 Not hit Not hit Not hit

Mar-01 Dec-07 -0.006661732 -0.022822196 -0.01087924 -0.027605073 -0.009840905 -0.011924686 -0.005942413 -0.007758826 -0.013472611 Not Hit -0.0027339 Not Hit -0.006875 Not Hit Not Hit Not Hit Not Hit -0.003813946 -0.011425135 -0.004345871 -0.008861622

-0.004302926 -0.006026365

1a.) The growth rate ranks and level ranks are different because of demands

of certain job sectors in recessions or expansions. Employment in the health sector is not very cyclical with growth rate because whether the economy is in a recession, depression, expansion or peak, the demand for health care is unchanged. On the other hand, the durable goods employment sector is cyclical with the growth rate of total employment because the consumption of these goods is considered a luxury and therefore elastic to changes in the employment growth rate and status of the economy (i.e recession, expansion). In times of recession there will be less demand for durable goods as opposed to in an expansion. We would invest in sectors not correlated with the growth rate of employment, since during recessions, this rate decreases. These sectors include health, education, and possibly transportation sectors. We would pick these sectors because they would be the least affected by a recession and therefore less risky. 1b.) In July 1990, the employment sectors that were hit the hardest seemed to be construction and durable goods. This is shown by them having the lowest growth rates in the period of their recession. The sectors least affected were transportation, health and education. These sectors did not show negative growth rates at the time of the recession. In 2001, the Dot-Com bubble burst and this lead to decline in the growth rate of employment in the information sector. This is shown in the data by the information sector having negative growth rates for the longest period of time (from March 2001 to April 04). The information sector also had one of the lowest growth rates during their time of recession. Finance, education, and health sectors did not have negative growth rates, so they were hit the least by the recession. In 2007/2008, the housing market crashed and there was a surplus of houses on the market due to all the foreclosures. This lead to a decrease in the demand for construction services, which also led to the negative growth rate in the construction employment sector. Transportation, education, and health (just like in the 1990 recession) were not affected very much by the 2007/2008 recession.