06 October 2010

University of Michigan Study Examines State Job Futures


For those wondering if the the job market will ever get any better, there are some answers from a new study by University of Michigan economists.

The good news, the economists say, is the job market finally hit bottom this year. And after losing nearly 250,000 jobs in a five-county region over the past decade, the number of jobs will actually start increasing next year.

"It's going to be good for the people who are employed, because there will be less risk that they'll lose their job, but for a lot of people who are unemployed, it's not going to look any better," said economist Don Grimes.

In it's first-ever report to the five-county Economic Growth Alliance Region -- which includes leaders from Genesee, Lapeer, Livingston, Oakland and St. Clair counties -- a team of U of M economists have analyzed the trends and spelled out what lies ahead in the years 2011 and 2012.

"House prices will still be low, and we don't see any improvement in people's 401-K balances, either," Grimes said.

But they do project a net gain in jobs in 2011 -- finally a turnaround from the past nine years, which have seen annual job losses.

The net gain, they say, is less than 3,000 new jobs for this region in 20111 and more than 8,000 jobs added in 2012.

The sectors that will grow include information services, professional scientific private education, construction, medical and health services.

As for the jobs of the future, manufacturing , they say, will continue to be making up its numbers till 2012.

Services like barbershops will have to wait for growth until people stop saving as much and start spending more, but the next few years do not look good at all for government employees and public school jobs.

One other interesting trend is it appears the self-employed sector has been growing as the number of traditional jobs has shrunk.

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