Three Economic Trends That Will Affect Your Jobs in the United States

In these turbulent economic times, one would normally expect the U.S. economy to be in a stable position, but that is not the case. In fact, the U.S. is currently facing some of its worst problems since the Great Depression. So where does this leave the global economy?

China. The U.S. is currently the most dynamic and largest economy in the entire world, but it is no match for China when it comes to economic strength. China’s economy is growing at an unbelievable rate and its economic system is also very advanced. As such, it has the ability to re-adjust its trade surplus in response to any given economic situation and maintain its economic superiority.

Brazil. Brazil has recently surpassed the U.S. as the second largest economy in the South American region behind only the Mexico. However, Brazil is starting to feel the pain of our current economic situation. Its nominal GDP per capita remains very low compared to the rest of the developing world, and its trade deficit continues to widen as it attempts to balance its increasing imports and exports. In addition, the Brazilian real estate market continues to weaken due to excessive speculation, making property inflationary and adding to the Country’s current woes.

India. Despite our current slow economic performance, India continues to be the fastest growing Asian economy due to rapid economic growth, better prospects for corporate investment, and stable policies regarding currency exchange and national debt. Although India’s current growth potential is much lower than China’s, yet the current government’s focus on infrastructure development and reforms in order to create more domestic capacity is encouraging.

European Union. The EU’s single market for exports, the Common European Bank, guarantees its financial system, and its ability to keep interest rates low across the board. With the recent news of an impending recession in the EU, many are speculating whether the system may fall apart or break apart. If its monetary policy continues to follow its current path of lowered interest rates, few investors will be willing to finance European countries.

Italy. Italy has experienced a dramatic rise in its economy over the past decade. Real estate bubbles and massive buildups of non-performing assets have helped propel its economy to stratospheric heights. However, with the loss of so many industries that were based in or near Milan, the lack of available jobs for Italian workers has caused a serious dent in economic growth.

United States. Nominal GDP per capita is declining, but the service sector (the private sectors in the private and public sectors) is growing at a healthy pace. The slowdown in the global economy has caused several problems in the United States, but perhaps none more so than in the service sector. This sector, which includes jobs in finance, banking, information technology, and technology support services, has been a major engine of the US economy over the last several decades, providing a substantial number of jobs for millions of Americans, particularly those who live in small cities and rural areas. In addition to the decline in nominal GDP, the number of private sector jobs that have been lost due to the recession has led to the loss of thousands of jobs in the United States as well.

Spain. Spain, like Italy, is facing tough times as it struggles to maintain its solid economic growth. Consumer prices are continuing to decrease as the unemployment rate rises in the country, and the country’s relatively weak economic system, paired with high interest rates, has resulted in an increase in the number of unemployed over the past year. With consumer price decreases outpacing wage increases, the unemployment rate is expected to rise further, though experts remain unsure if that will happen over a very short period of time. Meanwhile, Spain continues to deal with the fallout of the housing crisis, which is affecting both the United States and Europe.