Tag Archives: Economic growth

THE “R” WORD…NO RELATION TO THE “F” WORD

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.’”

KEEP YOUR CHIN UP, ‘CAUSE CHANCES ARE WAY DOWN

BY: Adam Gavriel

Goldman Sachs believes that America’s economic growth will only be a shade of what it once was. Predicting that the U.S. will only report a rise of 1.5% in the second quarter and continue to grow slowly at a rate of 2% in the third quarter, Sachs believes that America will continue to be in the “Great Recession.”

These numbers came at a big surprise to economist Jan Hatzuis who predicted a rise of 2% in the 2ndquarter followed be a big increase to 3.25% in the third quarter.

Consumer confidence has also fell almost 20% recently, going back to its level only previously seen in 2009 when Citi was facing bankruptcy.

Many believe that the fall of consumer confidence as well as the slow overall growth of the economy has to do with the impending debt ceiling and how the US plans to deal with it.

The slower the growth, the lower the consumer confidence, the higher the unemployment. Goldman Sachs has already upped their prediction for end of the year unemployment numbers from 8.25% to 8.75% after the discouraging reported growth of the US economy. Even though the 8.75% will be a smaller number than the current 9.2% some states, most likely including Connecticut, will still be operating at an unemployment number of greater than 9% (In May, CT reported a 9.1% unemployment rate – and hasn’t been at under 9% since 8.9% in 11/09).

With all the economic troubles, and the hit Japan took with the earthquake (congratulations on the World Cup win, can’t wait for the movie) the world’s economy, specifically the US economy, seems to be at a halt within itself.

Let’s break this down.

The higher the unemployment rate, the more people there are looking for jobs (obvious) however what’s not so obvious is the underlying meaning beneath this number. The higher the unemployment, the more competition there is for jobs. The more competition there is for jobs, the more selective companies can be. Selective companies can be a recruiters nightmare, but not for Crossroads Consulting. As a Connecticut based executive search and recruitment firm Crossroads Consulting is insulted by the 9% unemployment rate in CT.

Understanding that the higher unemployment gets the more “picky” companies can get, we aim to put the “human” back into human resources on every level.

We know you may not have time to build up your resume and perfect it to send to an employer. We can do that for you.

We know that you may have just gotten laid off from a company you’ve worked for the past 15 years and don’t remember how to interview. We can help you with that too.

If you’ve been keeping up with the blog this summer you’ve gotten great advice on resumes, cover letters, and interviewing, things nobody should be giving away for free but we did anyway.

Take a trip to our website and see what we have to offer.

Also make sure to like us on facebook, and follow us on twitter!

When we say we’re here to help on every level, we mean it. Let’s eliminate CT unemployment together.