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April 28, 2011 - Image 49

Resource type:
Text
Publication:
The Detroit Jewish News, 2011-04-28

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Cho

ECONOMY

Sushi & Asian Bistro

THE ROUND UP

Grand-Opening Special

Economics In Brief

4111 Orchard Lake Rd.i Orchard Lake, MI 48323
(248) 865-7388

HIGH GAS PRICES SHAKE CONSUMER CONFIDENCE

High gas prices in part caused a drop in consumer sentiment, which is at a
five-month low. According to a consumer survey from Thomson Reuters and the
University of Michigan, consumer sentiment plunged nearly 10 points in March to
68.2 from February's 77.5.
Economists polled by Reuters had predicted the index
would
fall only to 76.5."It is quite disappointing. It shows
-- — Ti,:.
ia
4
),
there are going to be some headwinds to consumer spend-
_ ing now that gasoline prices are on the rise from Middle East
and North Africa worries," said Sean Incremona, economist at
4Cast Ltd. in New York.
According to a separate report from the Commerce Department, consumer
spending was on the rise, but continued increases in the cost of gas may cause
consumers to hold more tightly to their wallets.
High prices at the pump are causing Americans to be less confident in the eco-
nomic recovery as well, according to the latest survey from Gallup.com .

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LAWMAKERS VOTE TO END MICHIGAN
PRICING MANDATE

Michigan lawmakers officially passed legislation that will
repeal the state law requiring individual price tags on most
retail items. The bill had the support of retail trade groups
that claimed the law resulted in higher prices.
Some Democrats opposed the change in law saying it is a
consumer protection against misleading pricing and would
be a hardship on consumers used to seeing price tags on
individual items. The revised regulations require retailers to post an item's price
where it can be clearly seen, but not on each individual item.

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MICHIGAN ECONOMIC RECOVERY OUTPACES THE NATION

According to a report from Comerica Bank, Michigan is now"experiencing a
stronger recovery in its labor markets than the nation." Dana Johnson, Comerica's
chief economist, said:"With its manufacturing sector leading the way, Michigan
is repeating the historical pattern of having a stronger recovery than the nation
after having a much worse downturn. Revised labor market data now confirm
that Michigan is expanding quite briskly."
Michigan's unemployment rate has dropped more than in other states — to
10.4 percent in February — due in large part to people dropping out of the labor
force. However, Johnson added that the state's "non-farm payroll growth has
outpaced the nation:'
From February 2010 to February 2011, non-farm payrolls in Michigan increased
1.7 percent compared with a gain of 1 percent nationwide. Johnson also forecast
that Michigan's boom won't last long, saying that the state's job growth beyond
2011 will lag the nation because of sluggish population growth.

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healthy and delicious!

Hours M-Th 11am-10pm

F-Sat 11am-10:30pm
Sunday 4pm-9pm

Cho

Sushi &Asian Bistro

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DEGREED JOB SEEKERS HAVE REASON TO SMILE

"The war for talent is back on,"said Chris Stark, territory leader for Detroit at
Troy-based staffing company Kelly Services, explaining there is more demand
than supply for highly skilled professionals. "Companies are working hard to retain
their talent as recruiters look to those who are already gainfully employed to fill
open positions!'
The demand is highest in Metro Detroit for engineers, IT professionals and
registered nurses, according to Kelly Services."We're seeing demand for lots of
engineers — industrial, mechanical and software — related to the rebound in the
auto industry,"Stark said.
For the more specialized positions, he added, Kelly is being forced to look
for talent outside of Metro Detroit to meet client demand. In the IT field, Kelly
Services has seen demand for systems analysts increase by 33 percent compared
with last year. Web developers are seeing a similar spike in demand.
In the health care sector, the demand for registered nurses is up nearly 47 per-
cent the first two months of the year. Demand for health care support positions
— such as pharmacy assistants or physical therapy assistants — also is up.

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STATE UNEMPLOYMENT BENEFITS REDUCED BY SIX WEEKS

Michigan Gov. Rick Snyder recently signed a bill passed by state lawmakers
that reduces state-paid unemployment benefits to 20 weeks beginning next year,
ignoring calls from state Democrats and worker advocacy groups to veto the
measure.
The bill does three things: It made a necessary technical change to the state's
unemployment insurance program so workers remain eligible for federal ex-
tended unemployment benefits. Without that technical change, 180,000 jobless
residents would have been cut off from 20 weeks of federal benefits.
The bill also requires the state Unemployment Insurance Agency to step up its
efforts to reduce fraud and go after penalties.
The amendment, which is being praised by the Michigan Chamber of Com-
merce and the Michigan Manufacturing Association, will reportedly save state
businesses up to $300 million annually.
"This was a necessary compromise," said Snyder's press secretary."[Snyder] had
the bigger picture in mind — his priority was to ensure no one
receiving unemployment benefits was cut off abruptly!'
Speaking to reporters after a speech to the Michi-
gan Association of Counties, Snyder said,"We're
still suffering in this state. I wanted to make sure
we could do whatever to help these people
to continue on a path until they can
find a job."


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