Northwest Economy May Struggle Awhile Longer

11/10/2009

The Northwest job market will stay sluggish for the next year. That prediction comes from at least one economist.

Eastern Washington University economist Grant Forsyth is reading the tea leaves, and what he sees isn't promising. He says federal stimulus spending has helped keep the Northwest economy from tanking. But he worries whatever boost it brings could easily disappear.

Grant Forsyth: "Once the stimulus money begins to run out, if the private sector hasn't taken up more job creation, that just means that those people will walk out of those jobs without anything else to go to."

Forsyth predicts Northwest businesses that export goods overseas may emerge from the recession faster than other businesses. He says aerospace and software companies are benefitting from the lower dollar value overseas, which makes their goods cheaper.

One big factor in the Northwest economy is housing. Congress extended the $8,000 credit for first–time homebuyers and is offering a $6,500 credit for homeowners looking to upgrade. Forsyth says that will help the housing market for now, but he wonders what will happen when it eventually expires.

I'm Doug Nadvornick, reporting.

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