Sunday, September 26th, 2021

Hicks: Economy growing at faster rate

Posted: Friday, January 7, 2011

Ball State economist Michael Hicks believes the American economic recovery is heating up, pointing out that job creation is up and layoffs are down.

The Department of Labor announced today that the private sector added 103,000 jobs in December, reducing the unemployment rate from 9.8 to 9.4 percent. Hicks says those job numbers will be revised upward in the coming month as more data become available.

Another encouraging report, released on Thursday, found that fewer people applied for unemployment benefits over the past month than in any four-week period in more than two years.

"The economy is beginning to grow at a faster rate," says Hicks, director of Ball State's Center for Business and Economic Research. "In order for the economy to grow at the pace we want, even this jobs number will have to double to perhaps 225,000 new positions monthly. We clearly aren't out of the woods, but in a month with an enormous snowfall on the East Coast-which typically keeps people indoors and companies closed - these are good figures that ought to encourage new hiring in the coming months."

Hicks says that a lower national unemployment rate should mean that Indiana will see better job growth, most particularly in manufacturing over the year.

Source: Ball State University