| As the worst recession since World War II closes in | | | | Miller, executive director of Workforce |
| on the two year mark, less people are losing their | | | | Solutions-Capital Area, told the Statesman. However, |
| jobs, but unemployment is still rising. People who do | | | | the job market remains competitive with new |
| have jobs are working fewer hours for less pay. | | | | graduates and those looking for seasonal work. |
| According to the Associated Press, the national | | | | While jobs are one measure of the economy's health, |
| unemployment rate is 9.5 percent, the highest it's | | | | consumer confidence is another. The official |
| been in 26 years. It's predicted to hit 10 percent | | | | Consumer Confidence Index comprises two parts, as |
| before the end of the year--a number President | | | | explained by the Associated Press recently. There is |
| Obama hoped to avoid with his administration's | | | | the Present Situation index measuring how shoppers |
| efforts to turn the economy around. | | | | feel about the economy. Then there is the |
| Layoffs have slowed down a bit across the country, | | | | Expectations index, which looks at shoppers' outlook |
| but hiring has not picked up. While Federal Reserve | | | | for the next six months. Overall, consumer |
| Chairman Ben Bernanke has been predicting that the | | | | confidence is far below what is considered normal, |
| recession will end this year, economists predict that it | | | | with the Present Situation Index showing the larger |
| will take years for the job market to recover. | | | | decline. |
| Companies and individuals are spending cautiously and | | | | What this means is that the Consumer Confidence |
| saving at record rates. | | | | index that is hovering in the 50s to 60s is nowhere |
| The picture continues to be brighter for the Austin | | | | near the number of 90 that indicates a healthy |
| area, where jobs were added in May. According to | | | | economy. However, the number has gone steadily up |
| the Austin-American Statesman, over 4000 jobs | | | | since its low mark in February. But analysts predict |
| were added in May, mostly in government and a | | | | that this recession, much like the Great Depression, |
| wide range of service jobs. Industries like | | | | will markedly change consumer spending habits for |
| construction and manufacturing continue to shed | | | | years to come. While spending a little wiser and |
| jobs, making the local unemployment rate 6.1 percent. | | | | saving for a rainy day are not necessarily bad things, |
| While this is slightly higher than it was a year ago, it's | | | | it does mean that getting the economy back on |
| still well below the national average and even below | | | | track is going to take some time. |
| the Texas average of 7.1 percent. The Austin real | | | | Austin is fortunate to have a wide base of job |
| estate market also seems to be showing signs of | | | | sectors, from the universities to the state capital to |
| improvement with seasonally adjusted sales | | | | the tech jobs. Austinites may be tightening the purse |
| improving since December | | | | strings a little; fortunately it is faring far better than |
| "Layoffs seem to have leveled off in the area," Alan | | | | some of the harder hit areas of the country. |