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Louisville forecast 2012.

At the start of 2011, the Louisville metro was on track for positive job growth. From January to April, the region added about 11,000 non-farm jobs, and the region's unemployment rate had declined by half of a percentage point. The start of the year's second quarter, however, was the beginning of an overall slowdown. From May to August, non-farm payrolls added no new jobs, and the unemployment rate only declined by three-tenths of a point. Since August, employment growth has resumed, and the region should continue to see gradual growth through 2012.

Employment

The Louisville metro continues to be down approximately 22,000 non-farm payroll jobs since the beginning of the Great Recession. Stronger manufacturing growth over 2011 helped partially erase the recession jobs deficit, but this growth is now beginning to slow (see Figure 1). Consequently, the region will continue to see positive job growth, but only at a slow rate.

[FIGURE 1 OMITTED]

Unemployment Rate

The Louisville metro's unemployment rate appears to have reached a floor. After declines earlier in the year, the region's unemployment rate settled around the 9 percent level (see Figure 2). As employment and the labor force continue to grow, the unemployment rate will not see significant declines from the 9 percent level since both the labor force and employment will grow at approximately the same rate. The most recent data point saw the unemployment rate increase back up to 9.6 percent. However, the underlying trend in job creation was quite positive.

[FIGURE 2 OMITTED]

On the other hand, the Southern Indiana metro counties (Clark, Floyd, Harrison and Washington) have enjoyed rates less than the region's average, with some counties experiencing unemployment rates around the 7 percent level. A favorable combination of growing employment and labor force is contributing to the overall rate decline. Hence, the outlook for Southern Indiana's unemployment rate is continued gradual improvement, with the area's rate settling to a level just above 6 percent.

Unemployment Claims

Southern Indiana's new claims for unemployment continue to show improvement from the escalating levels of 2009 (see Figure 3). The latest readings indicate that claims in the metro counties appear to have settled with no noticeable trend of higher or lower levels.

[FIGURE 3 OMITTED]

Manufacturing

Manufacturing contributed to massive employment losses for Indiana during the Great Recession and subsequently contributed to employment gains. Following the Great Recession, manufacturing drove Indiana's economic recovery due to inventory restocking needs following demand-driven cutbacks in production. Policymakers rejoiced over manufacturing gains, and Indiana was often showcased as a jobs leader nationally.

Perhaps this job growth was short lived. As the nation exits the inventory restocking phase, demand will be necessary in order to sustain earlier gains in manufacturing. Subpar sub·par  
adj.
1. Not measuring up to traditional standards of performance, value, or production.

2. Below par in a hole, round, or game of golf.
 growth in gross domestic product and slowing growth in Europe and emerging market economies suggest that the demand will not be sufficient to sustain these gains. Consequently, manufacturing growth has slowed and will likely see continued slow growth during 2012.

Services

Service sector growth has bounced back since the depths of the Great Recession, but has not been sufficient to erase the overall jobs deficit. For example, retail employment continues to be down 4,500 from prior to the last recession. Additionally, transportation and utilities, a significant component of the metro economy, has yet to bounce back from the 4,200 lost positions since September 2007. As consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level.  on leisure and business travel continues to recover, leisure and hospitality employment continues its recovery as well, adding 3,000 jobs since last year. Some of the most impressive growth can be attributed to the professional and business services sector (see Figure 4). From September 2010 to September 2011, 8,300 jobs were added to this overall employment barometer. On the downside Downside

The dollar amount by which the market or a stock has the potential to fall.

Notes:
You might hear someone say that the downside on stock XYZ is $10. What that means is that the stock could fall by this amount if things got bad.
, however, most of the professional and business services gains are attributed to temporary labor services, an indication of continued slack in the regional labor markets. The most resilient service sector, educational services and health care, continues to be in positive territory--but the most recent numbers point to a leveling of growth.

[FIGURE 4 OMITTED]

[FIGURE 5 OMITTED]

Housing

Housing continues to struggle. Permits remain well below trend, and home prices remain soft. Challenges faced in housing will continue to adversely impact consumer confidence and subsequent consumer spending. No significant housing recovery can be expected this year. Consequently, housing will continue to weigh on weigh on
Verb

to be oppressive or burdensome to: the expectations that weigh so heavily on diplomats' wives

Verb 1.
 consumer sentiment, adversely affecting overall consumer demand.

Outlook

The Louisville metro will continue to see job growth, but only gradually. As a result, the region's unemployment rate will continue to hover above 8 percent. Housing should also see a gradual turnaround, but at a very subdued sub·due  
tr.v. sub·dued, sub·du·ing, sub·dues
1. To conquer and subjugate; vanquish. See Synonyms at defeat.

2. To quiet or bring under control by physical force or persuasion; make tractable.

3.
 pace. Building permits and construction jobs will also see increases, but likewise at a very slow pace. The region should expect to see gradual improvement in the service sectors as consumers continue to experience an overall recovery and become more confident. Southern Indiana will see higher employment growth than the overall metro area This article is about the music production team. For the article about population centers, see metropolitan area.

Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani.
, and its unemployment rate will remain at levels lower than the region.

Uric u·ric
adj.
Relating to, contained in, or obtained from urine.



uric

pertaining to the urine.


uric acid
 Dufrene: Sanders Chair in Business, Indiana University Southeast History

The Indiana University Falls City Area Center was established by Floyd McMurray in 1941 as an extension center of Indiana University in New Albany, Indiana and Jeffersonville, Indiana.
, New Albany New Albany, city (1990 pop. 36,322), seat of Floyd co., S Ind., near the falls of the Ohio River opposite Louisville, Ky.; inc. 1819. The city was a shipbuilding center in the 19th cent., and the riverboats Robert E. Lee and Eclipse were built there.  
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Author:Dufrene, Uric
Publication:Indiana Business Review
Geographic Code:1U6KY
Date:Dec 22, 2011
Words:850
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