| December 31, 2009

Economy to improve, but not fully, in 2010, says Zandi

While the worst days of the Great Recession may finally be behind us, a new report from a leading economist suggests that it will still be years until an economic recovery is complete.

According to an article written by Mark Zandi, a chief economist at Moody’s Economy.com, in the Philadelphia Inquirer, the economic outlook for 2010 is “doing much better today than it was a year ago,” but will not be performing at any level close to its potential for quite some time.

Among the problems that Zandi said the economy would face would be ongoing problems regarding the foreclosure crisis as more that 25 million people remained unemployed or under employed while 15 million remain underwater on their mortgage payments.
However, he added that one sector that stood to see improvement and offset other impediments was in employment.

“Employment is still declining, but the losses are nothing compared with a year ago when nearly three-quarters of a million jobs were evaporating each month,” Zandi wrote. “The leading job-market indicators are also pointing to better times ahead.”

He explained that expected increases in companies hiring more temporary workers while increasing the amount of work given to their current employees were often signs that an increase in full-time hiring was on the horizon.

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