26
Jan
09

There’s a Bad Forecast Out for the Future – Jobs

Start updating your resume and hope perhaps you’ll never have to send it out, but there exists a good chance you will.  A report, just released today, by the “National Association for Business Economics” said in a recently released survey, which stated the US is in its worst business condition since the report’s inception in 1982.

I think all of us know things are going to get difficult on this issue, but none of us realized they would become this bad so soon.  The report summarized its conclusion with the following: “Thirty-nine percent predicted job reductions through attrition or “significant” layoffs over the next six months, up from 32 percent in the previous survey in October. Around 45 percent in the current survey anticipated no change in hiring plans, while roughly 17 percent thought hiring would increase.”

Additional excerpts from this AP Online Newswire report are:

Economic forecasters see more job cuts ahead

By JEANNINE AVERSA
AP Economics Writer
Jan 26, 12:33 AM EST

The recession, which started in December 2007, and is expected to stretch into this year, has been a job killer. The economy lost 2.6 million jobs last year, the most since 1945. The unemployment rate jumped to 7.2 percent in December, the highest in 16 years, and is expected to keep climbing.

Also in the survey, 52 percent said they expected gross domestic product to fall by more than 1 percent this year. GDP measures the value of all goods and services produced within the U.S. and is the best barometer of the country’s economic fitness. The last time GDP fell for a full year was in 1991, a tiny 0.2 percent dip. The economy shrank by 1.9 percent in 1982, when the country was suffering through a severe recession.

In terms of business conditions, more reported customer demand dropping, capital spending reductions and shrinking profit margins.

Many analysts predict the economy will have contracted at a pace of 5.4 percent in the fourth quarter when the government releases that report on Friday. If they are correct, that would mark the worst performance since a 6.4 percent drop in the first quarter of 1982. The economy is still contracting now – at a pace of around 4 percent, according to some projections.

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