Economy is making steady gains despite weak hiring
Published: December 6,2010
WASHINGTON — The economy is starting to fire on almost every cylinder these days but the one that matters most: Job creation.
Factories are busier. Incomes are rising. Autos are selling. The holiday shopping season is shaping up as the best in four years. Stock prices are surging.
And many analysts are raising their forecasts for the economy’s growth. Goldman Sachs, for instance, just revised its gloomy prediction of a 2 percent increase in gross domestic product in 2011 to 2.7 percent and forecast 3.6 percent growth for 2012.
“The upward momentum has more traction this time,” says James O’Sullivan, chief economist at MF Global.
If only every major pillar of the economy were faring so well.
Despite weeks of brighter economic news, employers still aren’t hiring freely. The economy added a net total of just 39,000 jobs in November, the government said Friday.
That’s far too few even to stabilize the unemployment rate, which rose from 9.6 percent in October to 9.8 percent last month. Unemployment is widely expected to stay above 9 percent through next year, in part because of the still-depressed real estate industry.
Job creation ultimately drives the economy, and it remains the most significant weak link.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Mississippi no longer has highest unemployment rate in nation
- McDaniel cites Gunn's challenge in his attempt to overturn loss to Cochran
- Payday lender, fired executive exchanging blame for lender’s regulatory woes
- Outside group files arguments supporting McDaniel
- Grain buyer’s bankruptcy could take steep toll on Delta farmers
- Mad Genius, Eyevox owner acquires Mississippi Film Studios
- Court rules board can discipline West Virginia radiologist
- Once the bane of only Southerners, kudzu is migrating north and west
- MDEQ fines metalworking firm over hazardous waste