According to a recent CNNMoney survey of 27 economists, outlook for the U.S. Economy looks rather bleak. The conclusion of the group is there will be only a modest hiring through 2012 and an unemployment rate of 8.7 percent by the end of this year.
The economists based their conclusions on the gross domestic product (GDP). The GDP refers to the market value of all final goods and services produced within a country in a given period. The indicator is a very broad measurement of the economic health of a country. Currently, the GDP is on line to grow 2.6 percent for 2011, slightly weaker than 2010, but the economists are projecting it to increase to 3 percent growth rate in 2012.
When the GDP starts hitting around 3 percent growth rate annually, historically, employers begin hiring at a more significant pace. In 2011, the growth rate started strong but waned after the Japanese earthquake this spring shook up the world economy when oil prices jumped up in response to the catastrophe. The economists attitude changed from upbeat to bleak, and they cut their ambitious projections about a quick recovery. Instead, some of the economists are warning there may be a new recession, indicating the economy is fragile.
One factor determining whether or not businesses begin hiring again is their confidence level in the overall economy. No one can really measure or predict how businesses across the board perceive the economy, but when the economy surges then draws back, this can shake business confidence.
The economists are also concerned about the overall employment outlook. Currently in the United States, the economy needs to add 150,000 jobs per month just to keep up with the pace of population growth. Those figures do not include the current unemployed who are returning to work.
The June 2011 employment report is expected to show between 80,000 and 120,000 jobs added to the job market, up from the 54,000 added in May. Taking the lower June estimate, the overall employment is currently meeting the population growth for the first six months, but just barely. The indication is that the job market is still soft and hasn’t taken off as expected. Therefore, there is a risk to recovery.
The good news is that there is a slightly better environment for hiring next year. The economists are predicting there will be 200,000 jobs added each month, and if true, that number will be sufficient to lower the unemployment rate to 8.1 percent by the end of 2012.
No one can predict the future, even economic futures, but barring another catastrophic world event like the Japan earthquake, the economy can recover. Even a sluggish start is a start in the right direction. Everyone is watching the economy right now. This includes the average person on the street all the way to the White House. That kind of scrutiny, if acted on, can be a very positive financial learning experience.
When the economy turns sour like it has for the past several years, many Americans have been forced into bankruptcy. They learned what it meant to financially sacrifice to survive. Their lives once seemed as bleak as our current economic outlook, but they learned there is life after bankruptcy. There is also life after recessions. As Americans we can survive.
There is no easy way out of a bad financial situation. They can happen to anyone, and the way out of them amounts to a lot of hard work and determination to overcome. Maybe you have found yourself in a difficult financial situation, you are considering bankruptcy as an option, and you want a fresh new start.
Bankruptcy laws can be complicated. If you are considering bankruptcy, contact a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan areas of Norfolk, Virginia Beach, or Newport News, Virginia or North Carolina, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
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