Local economic outlook cools off

Here it is, the middle of the second heat wave of the year, and it isn't even summer yet. I need something that will cool me off. Looks like the latest Federal Reserve Beige Book is just the thing.

For those of you who are not familiar with it, or who missed my summary of an earlier Beige Book, the Beige Book is the Federal Reserve System's anecdotal survey of economic conditions in the 12 Federal Reserve Bank districts. It makes for interesting reading because, in the numbers-obsessed world of finance and economics, there's nary a number in it. Instead, it is based on conversations with contacts in the various sectors, who report on what they are seeing in their corner of the regional economy.

As the Third Federal Reserve District covers southern New Jersey, eastern Pennsylvania and Delaware, its report is a good stand-in for a report on economic conditions in the greater Philadelphia region. And the current situation is that things are cooling off after a growth spurt at the beginning of the year.

Business continues to pick up in the region, but more slowly than in March, creating a sort of good news/bad news scenario for most people seeking employment in Greater Philadelphia. Retail employment, which tends to slow down in the city as summer approaches, will likely limp along, as most retailers reported weak year-over-year sales gains to the Philly Fed. Manufacturing, which grew strongly in the early spring, cooled to about half that growth pace this time around. In addition to rising prices for commodities, many manufacturers laid a good chunk of the blame for the slowdown at the feet of Congress, which failed to pass a new surface transportation spending bill - which would also have been good news for the construction industry had it passed. And, of course, the real estate market remains troubled, especially on the residential side, which also means little new employment in construction.

One somewhat bright spot is the service sector, where many firms reported both increased demand from existing clients and added demand from new ones.

One retailer quoted in the Beige Book pointed out a modest negative feedback loop currently at work. In explaining the weak sales figures, the retailer said, "The consumer is responding to value. Only confidence in the job situation will prompt broader buying." And as long as economic growth continues to limp along, there will be little confidence in the job situation.

By Sandy Smith

Sandy Smith is a veteran freelance writer, editor and public relations professional who lives in Philadelphia. Besides blogging for PhillyJobs.com, he has written for numerous publications and websites, would be happy to do your resume, and is himself actively seeking career opportunities on Beyond.com. Check out his LinkedIn profile and read his other posts on PhillyJobsBlog.com.

Region's businesses optimistic, but...

The Federal Reserve has released its April Beige Book - the periodic informal survey of business conditions in the 12 Federal Reserve districts - and the news from the Philadelphia Fed is good news for the economy, but guarded for the region's job market. Businesses in the region are optimistic that the recovery now under way will continue and strengthen - optimistic enough that demand for workers has risen, but not so optimistic that they are ready to hire on a large scale yet.

As in much of the rest of the country, manufacturing has rebounded in the Philadelphia district, which includes eastern Pennsylvania, southern New Jersey and Delaware. More than half the manufacturers the Philly Fed contacted said shipments and new orders increased in March, an increase in activity from February. Retail sales also improved, but not as strongly, and the earthquake and tsunami in Japan has disrupted shipments of electronics, autos and auto parts, also affecting sales.

On the construction front, activity remains depressed thanks to weak home sales and a languid commercial real estate market. But home sales are showing signs of picking up, and some builders told the Fed that they are seeing an uptick in remodeling jobs.

Service firms also reported increased business in March, but again, gains are modest. The Beige Book cited one respondent's response as emblematic of the sector: "The cycle has turned up, but our customers are being very cautious about increases in spending."

In sum, the economic recovery continues to gain steam in Greater Philadelphia and its surrounding hinterlands, but not enough steam to produce an explosion in hiring. Job seekers should expect continued stiff competition for available openings in their fields.

Gird yourself for battle. Use the educational and support resources on PhillyJobs.com to maximize your marketability.

By Sandy Smith

Sandy Smith is a veteran freelance writer, editor and public relations professional who lives in Philadelphia. Besides blogging for PhillyJobs.com, he has written for numerous publications and websites, would be happy to do your resume, and is himself actively seeking career opportunities on Beyond.com. Check out his LinkedIn profile and read his other posts on PhillyJobsBlog.com.

Some Shocking Signs That Poverty is Hitting America - Hard

Oakland Police facing deep cuts

There is no doubt about it, the economic situation in our country is getting worse. Although there has been some hopeful signs in regards to jobs and customer spending over the holidays, our Federal and State governments have been facing huge budget cuts and funding shortages. As anyone who has been out of work, looking for a job or has had their salaries or benefits cut can tell you, it is tough out there. We, as Americans have had it good for a long time and we often look at other countries that are struggling with national poverty and budget cuts and think that it couldn't happen here. But, it is happening, and I was shocked to see an article on BusinessInsider that showed some of the ways that budget shortfalls are forcing city and state governments into a situation where they are forced to cut out desperately needed services for the communities they serve.

Here are some of the signs that poverty is hitting our country hard:

• Detroit Public Schools wants to close half of all of its city schools, which would cause the schools to have class sizes of up to 62 students and cut 642 jobs.
  
  

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  Abandoned Factory in Detroit

  The Mayor of Detroit recently proposed a plan that will stop services like garbage pickup and police patrols to 20% of the city. They already have stopped trying to prevent people from vandalizing abandoned factories in the city and have left them to the gangs.
  
  
• In California, state workers are being required to turn in their government cell phones.
  
  
• New York Gov. Cuomo is trying to completely get rid of 20% of the state's agencies by combining several agencies.
  
  
• Mayor Bloomberg has closed 20 fire departments at night in NYC and is proposing layoffs in every state agency. The cuts included stopping services for seniors, libraries and cultural centers.
  
  
• In Prichard, Alabama, the city recently just stopped sending pension checks to their retirees. Even though it is a violation of state law, hundreds of retired firefighters, police officers and other city workers aren't receiving their pensions.
  
  
• The state of New Jersey has cut their budget by 26%, and laid off thousands of teachers. They also eliminated 1,3000 state jobs and reduced funding to cities and still are dealing with more that a $10 billion deficit.
  
  
• The city of Newark has been forced to cut its police force. As a result, they have seen a huge crime spike.
  
  

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  Neighborhood in Camden, NJ

  Camden, NJ has the title of the second-most dangerous city in America and they have been forced to lay off half of their police force.
  
  
• Philadelphia, Baltimore and Sacramento have started shutting down city fire stations on a rotating basis causing people to have longer response times and costing lives.
  
  
• Clayton County, GA has been forced to eliminate their public bus system in order to save $8 million.
  
  
• Oakland, CA police will now stop responding to several types of crimes in an attempt to save money. The crimes considered “not important” are car accidents, grand theft and burglary.

It seems that across the country, jobs and budgets are being cut and citizens are being forced to go without some of the valuable services that we all rely on. No one can argue that police, fire departments, teachers and libraries are important but, without the money to finance pay for them, cities are being forced to make tough choices.

What do you think about these signs that our country is in a serious financial crisis. I would love to hear your thoughts in the comments.

If you are looking for a new job in the Philadelphia area, be sure to stop by PhillyJobs.

By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for PhillyJobsBlog, along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.