A bright future is in store with 47,000 new jobs awaiting students after graduation in 2008, according to a recent economic forecast from the Ball State University Bureau for Business Research.
RESEARCH FINDINGS
Tom Charles, senior research analyst for the bureau, said he and graduate student Sekhar Kathi worked on statistical analysis for the forecast, which showed economic growth in the next year, both nationally and in Indiana.
"There is no evidence that the nation as a whole is doing anything but near-record growth," he said. "It's largely happy across the board."
Employment rates declined from 1988 to 2005 but are now on their way back up, he said.
Bureau Director Michael Hicks said the forecast also showed lower interest and inflation rates.
This year is predicted to be the fourth largest expansion of our economy on record since the American Civil War, he said.
He said while the national economy experienced growth in the past few years, Indiana was only beginning to pick up the pace.
Technology replaced the need for some workers in manufacturing and industrial fields, Hicks said, but the process keeps the economy moving forward.
"These people will bounce back," he said. "But the adjustment period is always painful."
Certain risks, such as a terrorist incidents, higher oil prices and unaffordable mortgage rates, could stand in the way of the projected growth, he said.
"The media tells us that issues like high mortgage rates will bring the economy down this year," Hicks said. "But the data tells us that things are looking rosy instead."
Bureau members collected and analyzed data for more than five months before presenting their assessment Tuesday at the Indiana Economic Outlook luncheon and Wednesday in front of Gov. Mitch Daniels, he said.
Both presentations were well received, Hicks said.
Charles said this was the first year the annual forecast, which is based on census data and estimates, included Indiana's economy.
HOW STUDENTS BENEFIT
Charles said the forecast is based on recent census data and estimates on how the state of the national economy will drive Indiana's economy.
Students hunting for a job in East-Central Indiana can look forward to higher employment rates and beginning salaries compared to previous years, he said.
Hicks said the creation of jobs causes the employment rate to go up and workers become in demand.
"That's great if you're a college student," he said. "You'll be in high demand once you graduate."
Charles said because inflation influenced the price of goods and services, a lower inflation rate means the average income can go further in stores.
"For college students, this means buying pizza and beer is less of a burden," he said.
Interest rates make a difference when it comes to student loans, he said.
"A lower interest rate can mean paying less on your loans and car payments," Charles said.
Credit card rates might also follow the declining interest rate, he said.
Numbers:
Job Growth:
47,000 net new jobs in Indiana by end of 2008
Wage growth:
Wage growth in Indiana is projected to be at 3.8 percent but with larger gains concentrated among existing employees.
Most of the job creation will occur in areas such as financial services and health care, where skilled labor earns higher wages.
Inflation:
Indiana's inflation rates are expected to be about 2.6 percent, lower than 3.8 percent average from 1960 to 2006.
Unemployment rate:
Unemployment in Indiana is expected to be at about 4.6 percent, the same as the national average and lower than the 5.9 percent Indiana average from 1960 to 2006.
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