Friday, June 1, 2012

Job outlook, slow recovery

Unlike prior recessions, where an upturn could occur quickly with a major company expanding to add thousands of jobs at a time, this will be much slower. The top levels companies are not in a position to make major expansions. In many cases, the top level companies are continuing to cut jobs.  HP announced cutting 25,000 over the next couple of years.

Where will the growth come from? The small and medium businesses. Hence, the slow growth. They will grow over time and add jobs here and there but it will be slow.

The New England Economic Partnership issued its latest forecast for the six-state region today, showing that jobs will grow by an average of 1.3 percent a year through the end of 2016. That means the region’s labor market won’t return to pre-recession levels until 2015. 
A weak housing market and a frequent mismatch between workers’ skills and available jobs will make it tougher for the region’s economy to bounce back from the Great Recession. In Massachusetts, where the economic recovery began in mid-2009, the impending retirement of many baby boomers is also cited as a concern because it could result in a massive shortage of skilled workers.

Read more:

You can find the full report here

Planet Money confirms the past performance of slow growth with this report

No comments:

Post a Comment