EmploymentCrossing Releases Report on Economic Outlook for 2013

December 05, 2012   |    PDF version

December 05, 2012 — Pasadena, California — EmploymentCrossing.com, a leader in the job aggregation and job search industry, has released a report - Economic Outlook for 2013.

The report focuses on fiscal projections, and a look at the current and projected Unemployment Rate, and the continuing economic recovery and baseline projections for fiscal year 2013.

“We believe both employers and jobseekers will benefit from reading this report, as it gives both an insight into what's driving the market right now and in the foreseeable future” said Harrison Barnes, founder and CEO of EmploymentCrossing. The data is derived from the Bureau of Labor Statistics, Congressional Budget Office and other government institutions.

Projected unemployment statistics by education level

Americans with a college degree continue to do well, with the unemployment level going down as they become more qualified. Doctorates and those with a professional degree have the lowest unemployment rate at just 2.5 percent and 2.4 percent respectively.

Policy changes scheduled to take effect in January 2013

Among the policy changes that are due to occur in January under current law, the following will have the largest impact on the budget and the economy:

A host of significant provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-312) are set to expire, including provisions that extended reductions in tax rates and expansions of tax credits and deductions originally enacted in 2001, 2003, or 2009. (Provisions designed to limit the reach of the alternative minimum tax, or AMT, expired on December 31, 2011.)

Sharp reductions in Medicare's payment rates for physicians' services are scheduled to take effect.

Automatic enforcement procedures established by the Budget Control Act of 2011 (P.L. 112-25) to restrain discretionary and mandatory spending are set to go into effect.

Extensions of emergency unemployment benefits and a reduction of 2 percentage points in the payroll tax for Social Security are scheduled to expire.

Budget and Economic Outlook for 2013

CBO's Baseline: Taking into account the policy changes listed above and others contained in current law, under CBO's baseline projections:

The deficit will shrink to an estimated $641 billion in fiscal year 2013 (or 4.0 percent of GDP), almost $500 billion less than the shortfall in 2012.

Such fiscal tightening will lead to economic conditions in 2013 that will probably be considered a recession, with real GDP declining by 0.5 percent between the fourth quarter of 2012 and the fourth quarter of 2013 and the unemployment rate rising to about 9 percent in the second half of calendar year 2013.

Because of the large amount of unused resources in the economy and other factors, the rate of inflation (as measured by the personal consumption expenditures, or PCE, price index) will remain low in 2013. In addition, interest rates on Treasury securities are expected to be very low next year.

Industries Set to See Rapid Growth in 2013

The video game industry is one of the fastest growing sectors in the U.S. economy. In fact, according to PricewaterhouseCoopers, the North American video game market will continue growing by approximately five percent annually through 2015. From 2005-2009 the industry's real rate of growth was more than seven times the real rate of growth for the entire economy. In addition, computer and video game companies posted strong overall sales in 2011 with revenues of nearly $25 billion as entertainment software companies continue to provide jobs to state and local economies across the nation. The average salary for an entertainment software industry employee is $90,000.

Streaming media is another rapidly growing sector, which is set to create a lot of jobs soon. The television sector is converging with the Internet, disrupting the broadcast and cable industry, and providing innovative and massive video services to the end-user. As more of the public moves into the cord-cutting technology of streaming media, with an estimated global market share of over two billion by 2016, multiple digital distribution outlets and equipment vendors are competing for your dollar.

CONTACT:
Andrew Ostler
EmploymentCrossing
626-243-1814
aostler@er.org
https://www.employmentcrossing.com

About EmploymentCrossing:

EmploymentCrossing is part of the Employment Research Institute, which is one of the most powerful and comprehensive organizations dedicated to helping professionals find jobs that will enhance their careers. Employment Research Institute consists of 120+ of industry-specific and 120+ location-specific job boards which consolidates every job opening it can find in one convenient location. The website also offers a seventy two-hour free trial to new members.