Business leaders in the Evansville region are taking a close look at the present status of the economy as well as the potential future state of the economy.
Earlier this afternoon, the Evansville Regional Economic Partnership presented its annual economic outlook luncheon.
Third Bank’s chief market strategist, Tom Jalics, told the audience that while the region’s economy has improved since its inception, concerns such as inflation and the supply chain are likely to persist through the remainder of the current fiscal year.
“The state of our economy is good. Even yet, there are some things that have not returned to their previous state,” Tara Barney, CEO of the Evansville Regional Economic Partnership, explained.
Jalics stated that the federal government did a fantastic job last year in providing stimulation to the economy to assist it to weather the beginning of the epidemic. He also believes that manufacturing, which accounts for a significant portion of the Evansville region’s economy, is contributing to the improvement of the local economy.
“Because the manufacturing sector accounts for mid-20 percent of the GDP in our country, manufacturing is the economic foundation.” There has been a lot of growth in the manufacturing sector. The job market is expanding rapidly, and things are better,” he remarked.
According to today’s jobs report, the U.S. economy added 531,000 jobs, and unemployment decreased from 4.8 percent to 4.6 percent in the past year. It appears that there is a link between the epidemic and the employment market, according to Jalics “COVID instances are increasing, and job reports are becoming a little weaker,” he stated. “When the number of COVID cases decreases, employment reports become somewhat more positive. Consequently, we would attribute the most recent jobs data to cases being re-opened and people returning to the workforce.
Despite the fact that supply chain concerns may not be rectified until the middle of next year, Jalics cautions that inflation continues to be strong, making everything from petrol to groceries more costly.
According to Greg Wathen, executive director of the Economic Development Coalition of Southwest Indiana, “If you look at families in especially, their cost of food, their cost of electricity, their cost of gas, that’s a problem for everyone.”
According to Jalics, approximately three million Americans are now not participating in the labor force, and worker shortages in those industries are likely to persist until those employees begin to return to the workforce.