Saturday, March 7, 2009

Economic turn around and prosperity



The current economic climate has slowed to recession level and unemployment has risen to 8%. Unemployment rates very from city to city. Certain cities and regions are prepared to ride out the recession better than others:

Boston Ma:

42% of the jobs here are in what are considered strong industries. The current metro unemployment rate is 5.4%.

  • The segmented job market is:
  • professional (white collar), scientific, technical jobs 10.4 %
  • Education jobs 11.11%
  • Health Care 15.7%
  • Government 5.3%

Boston's economic strength resolves around our world class Universities with massive endowments, including Harvard and MIT. The is very strong funding for bio medical research which ties into our world class hospitals and health care system.

Consumer spending has tailed off as lay offs mount, stock market and 401k values tank, and credit becomes more difficult to obtain. As lay offs and the stock market decline hits bottoms, people again will look forward to buying homes, cars, electronics, etc. Will we purchase USA products if they are equal in quality and prices to the foreign competition?

Many USA companies are betting yes on this question and must prepare and build the best products possible. This will lead me back to the auto industry in my next post! Will GM survive?

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