BY: Adam Gavriel
The new “R” word that economists would like to see on everyone’s mind this year is, “rebound” and not, “recession.” Reports from Bloomberg on January 31st show the economy will bounce back in the current quarter after gains for consumers and businesses in the final three months of 2012.
“It would be a mistake to view this drop in GDP — driven by temporary corrections in defense spending and inventories — as a possible harbinger of recession,” Nigel Gault, chief U.S. economist for IHS Global Insight in Lexington, Massachusetts, said in an e-mail. “We expect GDP growth to rebound to around 2 percent in the first quarter.”
GDP saw gains of 2.2 percent in 2012, and many economists believe it will be on the same track this year with gains in the neighborhood of 2-2.3 percent.
“Growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors,” the Federal Reserve said yesterday at the conclusion of a two-day meeting in Washington. “Household spending and business fixed investment advanced, and the housing sector has shown further improvement.”
There’s a reason why they’re called “natural disasters.” Superstorms like Hurricane Sandy, and Katrina seven years ago do more than just ravage destruction on the lands that are unfortunate enough to see these storms land on. These monsters also take out local businesses and reduce spending in the area. When it hits major areas like New Orleans with Katrina, or New York City with Sandy, these can have not only a domestic effect, but a global one as well. The United States economy finally seems to be rebounding after the hurting that Sandy put on the east coast. There’s that word again, rebounding.
But what does all this have to do with the job market? Well…
Government figures that are to be released soon are projected to show that employers added 165,000 workers to payrolls, an increase of 10,000 from the number in December.
Home-building also rose 11.9 percent last year, it’s best increase since 1992. And as we have reported here on the blog at OutOfOurMind, home-building is a key factor in economic recovery, especially among young families.
There are varying reports and viewpoints on how the economy is going. Of course, a rebound after a recession isn’t something to get too proud about, but it is certainly a step in the right direction; and these steps need to start somewhere. While the numbers aren’t as promising as they need to be, the economy at some points seems headed in the right direction, while stalling at others.
Estimates of recovery are great, but until it comes to fruition in reality, it’s all speculation.
Here at Crossroads Consulting we have been trying to get Americans working again. With over fifty job postings from around the nation, our job is to make sure you get one! If you’re not confident in your resume or interviewing skills, we can help you there as well.
All we want to do is make this process as easy as possible for you, and maybe provide a few laughs along the way in what we know can be a dark time.
Remember, “We’re putting the ‘Human’ back into ‘Human Resources.’”