ECONOMY 'WELL POSITIONED AND READY'
updated 07/23/14 02:06 PM
CUs Can Target Growth Areas
As the economy expands throughout the latter half of 2014, credit unions should focus particularly on the largest employment sectors and growth in these areas, according to California and Nevada Credit Union Leagues Chief Economist Dwight Johnston in his latest Credit Union Digest column.
California is especially well-positioned to see continued growth in professional and business services (a lot of capital spending is on technology), and trade and transportation (business through the Port of Los Angeles was already higher in May of this year versus the year-ago period by roughly 20 percent).
Education and health care is a sector that never experienced a recession, and California can look for strong job growth this year as people embrace the new federal health care program like no other state. California added 1.4 million insured people.
Stronger job growth generally will also boost the totals in the recovering construction sector.
Nevada hasn’t experienced quite the recovery in jobs that California has. But excluding the hole left by a drop in construction jobs, the three largest employment sectors are approaching pre-recession levels. Nevada will benefit as the U.S. economy exceeds expectations.
“There will, of course, be fits and starts along the way, and there could be some outside, unexpected force that throws everything off stride,” Johnston said. “But barring any great surprise, I believe the job market in California in particular will outpace assumptions. This looks like a breakout year.”