USA is passing through a tough period giving sleepless nights to economists and politicians. Stock market is the financial mirror. The happenings there have affected not only the investor but every citizen in one or more ways. The government finds it difficult to control GDP and national debt. Economic problems demand more attention than the political and international problems. With a stagnant economy, and weak morale, USA seems to be doldrums, not sure about the steps needed for a grand recovery. Consumer confidence is at low ebb.
The much talked about real estate market, is just trying to balance itself. It is one of the important sectors supposed to give some hopes and produce additional avenues of new jobs to check unemployment. Granted that it is doing reasonably well, yet one sector alone will not solve the double digit unemployment problem.
Is the job market improving? In its entirety, no! But certain sectors are showing the signs of recovery. The existing state of affairs and the immediate prospectus for sectors like computer programming, automobiles do not look good. Health care industry is doing well. Financial services are trying to do well but not yet out of woods. Is the worst for the Wall Street over? The answer is a hesitant yes.
No big layoff but the churning process is going on:
The hiring still continues to be weak. Unemployment rate is expected to go from the present 9.6% to 10, before the recovery process begins. Spending area is depressing and the hangover of recession still continues. Without the hiring boost, its fallout on political fortunes of the aspirants is seen. Democrats are still unable to give convincing evidence of a turnaround to create interest amongst the people, who are not much inclined to trust half-hearted promises.
The nightmare of big layoffs of 2008 and 2009n is certainly over. Just think of the past layoffs:
- Citigroup 59,000
- Starbucks 12,000
- General Motors 47,000
- Berkshire Hathaway 17,000
Even with layoffs, companies are now recruiting for other specialized positions. The jobs of the existing staff seem secure, after the realignment subsequent to layoffs.
The ongoing hiring process
Some industries are on the upfront. In 2009, transportation was up by 119%, retail 55%, manufacturing 67% and healthcare 17%. American companies are finding it difficult to get staff for some specialized jobs like carpenters, nurses, electricians and welders. Those who are unable to find jobs are learning additional skills to be become eligible candidates in the available positions. In the long run, multiple skills are good both from the point of view of the staff and the institutions. Private sector is also adding jobs, indicating that the economy is on the path of recovery.
Notwithstanding the hopeful signs, noticeable improvement about which the Nation can be proud of is not seen and according to well-informed sources pre-recession levels are not expected before 2013. There is still a thick blanket of clouds in front of the bright sun of recovery, which everyone craves to see in USA.
But the big positives in the employment market are still far-off, and no one knows how to achieve them. Government dole-outs and social security measures are no permanent solutions and in the long-run, they are the humiliating experiences to the concerned individual/family. If the jobs are lost in thousands and added in hundreds in some sectors, the position is not going to get better.
The silver lining is the government’s determination to face the problem head on. Any politician, at the highest or the lowest levels, is interested in getting elected for the second term, must deliver goods. Unemployed want employment, nothing else.
