Economy Gets a Face-lift: Job Growth In Recovery

The private sector received some good news on job creation according to a USA Today survey of 43 economists conducted May 6 – 9 who predict the economy, regardless of the status of potential Congressional recovery bills, will improve more firmly by the end of 2013 than in recent years. This demonstrates an overall increase in confidence for the nation’s leading economists in business growth as companies prepare their strategies for the second half of 2013. Federal spending cuts of $65 billion this year will likely delay growth in Q2 and Q3, but by the end of the year, rates are slated for stronger returns to a predicted 2.7 percent in the fourth quarter. The economy was at a 2.5 percent annual rate in the first quarter, and the survey showed estimated project growth most likely to slow to 1.8 percent in the current quarter and 2.2 percent in the third quarter, thereby opening the fourth quarter to a strong end-of-year finish, with some predictions of 3 percent by early next year as job gains inch to a 200,000 average monthly pace. For comparison, since the labor market hit rock bottom in 2010, averages then were around a 2 percent annual growth and monthly job volume at 162,000. While this is promising, obstacles still remain, most notably the health care bill, which continues to impact the fluctuations of a recovering economy and job growth. Dina Dwyer Owens, CEO of The Dwyer Group was on FOX Business, After the Bell in January discussing the limitations she faces as a business leader and the long-term impact: