Economists Becoming More Optimistic On Jobs

American businesses will stop shedding jobs by the end of March, says a new report from the National Association of Business Economists.

The organization’s latest outlook is even more hopeful than the one issued just a month ago. Today’s report says that the U.S. economy will grow at an annual 3.2 percent GDP, half a point higher than the NABE’s October forecast.

The economists say the recovery will be lead by the  housing turnaround already underway, which will gain momentum next year, and by business investment in equipment, software, and inventories.

“While the recovery has been jobless so far, that should soon change,” said NABE President Lynn Reaser, chief economist at Point Loma Nazarene University. “Within the next few months, companies should be adding instead of cutting jobs.”

Article Continues Below

Consumers, however, are unlikely to open their wallets anytime soon. The 48 economists participating in the survey expect “lackluster consumer spending gains over the coming year.” Instead, consumers will continue saving, averaging 4 percent during 2010.

The unemployment rate, now at 10.2 percent, is expected to hover there through the first half of next year, declining only slightly — to 9.6 percent — by year’s end. The report said that next to the size of the federal deficit, unemployment over the next five years was the biggest concern of the economists on the survey panel.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

Topics

3 Comments on “Economists Becoming More Optimistic On Jobs

  1. David, from the same article you linked to: “…it’s not really clear that GDP accurately reflects the state of the economy.” Economic analysis is based on assumptions not 100% facts; have to be careful when quoting preliminary data to an audience who likes to take the written word as the Gospel. 😉

Leave a Comment

Your email address will not be published. Required fields are marked *