State of the Economy

Ryan Herzog, Ph.D. Assistant Professor of Economics

Gonzaga University9/28/2011

Prepared for INDC

Outline• State of the National Economy– GDP– Unemployment– Inflation (Monetary Policy)

• Local Economy (State and Spokane)– GSP– Unemployment– Continuing Issues

State of the Economy

National Output

National Unemployment

Unemployment

Manufacturing and the Labor Force

Structural Concerns

Jobs• The recession has simply magnified and sped up

job losses in the manufacturing sectors.– The construction industry provided alternative

employment.• We need to focus on retraining 5 million workers.• Extending unemployment compensation does

not address the structural problems in the manufacturing industry.– Workers are searching for jobs that do not exist or will

not exist in the near future.

Inflation Rates

Short and Long-term Interest Rates

Investment

Conclusion on the National Economy

State Unemployment

State Unemployment

Spokane Unemployment

Washington and Spokane Income

Foreclosure Rates

Washington State HousingForeclosure Rates (First Lien)

March 2011 December 2010 September 2010 June 2010 March 2010Spokane 3.2 3.2 3.1 2.9 2.4Seattle/Tacoma 4.1 4.0 3.7 3.1 2.8Portland/Vancouver 4.1 4.7 3.7 3.5 3.4Yakima 4.3 4.3 4.2 3.8 3.5Olympia 3.6 3.5 3.3 2.8 2.4Wenatchee 2.6 2.7 2.3 2.0 1.8Tri Cities 2.1 2.2 2.2 2.0 1.9Coeur d'Alene 3.8 4.0 3.8 3.8 3.5Lewiston, ID 2.6 2.9 2.5 2.1 2.2

90+ Days - Delinquency Rates (First Lien)March 2011 December 2010 September 2010 June 2010 March 2010

Spokane 3.2 3.1 3.2 3.5 3.7Seattle/Tacoma 4.3 4.3 4.3 4.8 5.0Portland/Vancouver 3.2 3.4 3.2 3.6 3.8Yakima 3.2 3.3 3.8 3.9 4.0Olympia 3.5 3.6 3.7 4.0 4.3Wenatchee 2.6 2.6 2.8 2.9 3.1Tri Cities 2.0 2.1 2.3 2.7 3.0Coeur d'Alene 2.7 2.5 2.6 3.0 3.6Lewiston, ID 2.1 2.0 2.5 2.6 3.1*Source www.foreclosure-response.org (Center for Housing Policy)

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