Why the recovery seems so lackluster

July 14, 2010
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If the recovery from the recession seems anemic, a new analysis from the Federal Reserve Bank of Chicago explains why.

The recession was so deep and lasted so long that it’s taking seemingly forever for jobs to come back. The pace of job recovery is on a similar trajectory to recent recessions, but the hole is really deep.

Temporary employment is way up across the fed district that includes all or parts of Illinois, Indiana, Iowa, Michigan and Wisconsin. But construction, both commercial and residential, is still on its back. Banking jobs are doing poorly, as are jobs in hospitality sectors. State and local government employment is down, contrary to prior recessions.

Indiana comes out looking pretty good. In the year ended in May, Indiana is the only state in the fed district where job numbers increased—by 24,100. Indiana was one of two states to see some recovery in manufacturing employment. Indiana also had a surge in temp jobs and some increase in hospitality positions.

What are your thoughts?

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  • Opportunities & Solutions Being Missed???
    My thoughts are the State of Indiana needs to focus on the missing piece of their puzzle, Economics of: Comprehensive Economic and Community Development, creating places where people, the human capital that they want to attract and stay, want to be. By Cleaning up the Center of the Communities and corridors with form based zoning code, and following through with form based financing to get it done, spending the little dollars that our Cities and State have, were they will get the long term sustainable solutions, ROI Return on Investment, while reducing compounding over spending, by the overbuilding of more out farther and farther outgrowth. this over building of the road system and financing of many intensive for out growth create more area for more government, to spend more. We need Leaders in this State that get Reducing Government Spending is Smart Growth, Form Based Financing!
  • You are right and wrong
    I believe after traveling the US the last two years and visiting many peer companies tht Indiana is fairing quite well in fact do not read the paper or watch TV you would not know we are in a recession. WE do neet to revitalize our core areas of our Metropolis, but at the same time utilize the assets that we have, highways that connect companies whether they are Walmart, Bioscience, Healthcare keep naming the non manufacturing we do in this area of Central Indiana. Not all ideas are home runs not all business is successful, but we have more here than most and our conservative thinking has helped the bottom line. But I do agree that we need to always think outside the box and that is what is missing and you have brought out just one component of a diversity that we need in our area.
  • Smart Growth
    Very well spoken. In-filling development will reduce driving time and CO2 levels. New approaches to making cities not only more liveable, but if possible, delightful, if you will, should be a top priority of city leaders.

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  2. If you only knew....

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