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The Economic Portents for 2011

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As the US continues its gradual and yet persistent recovery from the global recession, the New Year heralds the beginnings of fresh hope and expectation for the unemployed citizens in society. Obviously, one of the most documented consequences of economic hardship and turmoil is unemployment, where redundancy and the closure of companies forces individuals from their positions and into an ever competitive job seekers market.

Of course, the issue in an economic recovery is that there is not enough positions to satisfy the increased number of unemployed citizens. This is because companies and organizations often choose to utilize this period as a time for consolidation, and are therefore loathe to expand their enterprise and employ additional bodies. This can lead to a frustrating and ultimately fruitless job search for many, and create a prominent sense of apathy and depression amongst large sections of society.

The Signs Ahead for 2011

Given these accepted economic theories, it is surprising to learn that the indicators are particularly positive for 2011. Although it is expected that the year will still see only a gradual and intermittent improvement in terms of unemployment levels, the same period of time is set to see the creation of between 2 and 3 million jobs within the US economy. This is a natural progression for economic climates afflicted by a recession, as companies emerge from financial hardship and look to expand their companies to previous capacity.

The corollary of this boom in job creation will be significant, although it will not impact directly on society immediately. It will instead create a legion of companies that are able to improve their own productivity and subsequent profitability, which in turn will create an increase in economic wealth and the disposable income amongst the citizens of the US over a prolonged period of time. In the longer term, this is a necessary step for employers to complete the recovery from recession and be enabled to offer additional and increased employment opportunities.

Through 2011 however, this explosion in job creation will have negligible effect on the rates of unemployment, as it is likely that members of society who stopped seeking work through 2010 will rejoin the job market. This may even see the numbers of unemployed US citizens rise through the early stages of the calender year, as an increased number of applicants compete for these coveted new jobs. However, the mere creation of these positions is a continued portent of an increasingly healthy economy.

A Time for Patience

For job seekers, both patience and an understanding of how the economy works are crucial to a fulfilling New Year. The recovery from an economic depression is as gradual as the original onset is sudden, and needs to be managed properly to ensure a long term prosperity and stability. The responsibility for this management lies chiefly with companies and employers, who are required to be accurate in their financial planning and diligent in the levels of new jobs that they create to help them meet their revenue targets.

Of course, caution is the most significant consideration for companies looking to emerge from an economic depression. This means that the creation of new employment opportunities need to be well timed and in line with the requisite financial forecasts, and therefore realistic to sustain over a lengthy period of time. Through the birth of long term and stable job opportunities, employers can expand their business responsibly while ensuring that unemployment statistics fall steadily.

Therefore, job seekers need to be patient and show an awareness of the gradual nature of economic recovery, so that they can search for suitable positions without expecting to find the ideal job immediately. The total rate of unemployment is still predicted to sit at approximately 9 percent by the end of 2011, and although improved will not have been sated completely by the anticipated influx of occupational opportunity. This means that the job market will remain competitive and the job search lengthy, and only individuals who remain focused and immune to frustration will benefit from increased economic activity.

A Time for Economic Growth

The pattern of economic recovery has been developed through the middle and latter periods of 2010, where the US saw the level of job openings increase by 20 percent between June and November. This, alongside the decline in the redundancies and job lay offs, appears to have been the catalyst for the optimistic forecasts for the coming year. The term recovery is often misunderstood however, as many citizens and job seekers expect a sudden and abrupt change in economic fortunes and job possibilities.

Of course, the path of recovery is never as steep or as sudden as that of depression, and needs to follow a set and regulated pattern in order to regenerate a nations economy. This pattern is part of a cycle, and is especially gradual in terms of job creation and a reduction in unemployment rates. The steady nature of economic recovery is beneficial for job seekers and employers in the long term however, as it is the only effective way to ensure a well grounded and long term prosperity.

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