The latest employment numbers continue to show significant improvement in the economy. Granted, the recent numbers have been a jumbled mess due to Easter and the Census. But if you look below the misleading headlines and campaign speeches, you will find significant improvement.
It looks like the private sector produced 123,000 jobs in March and 60% of all reporting industries indicated job growth. I think it is now safe to say the economy is growing again and the recession did indeed end in July or August of last year. We have turned a corner and the immediate future is looking better.
Granted, the picture is not completely rosy. Those unemployed less than 26 weeks are likely to get recalled to work. However, those unemployed for more than 26 weeks due to a plant closure will probably remain unemployed for a significant amount of time.
Moderate GDP growth of 2 to 3 % for 2010 and 2011 is definitely on tap.
One thing to watch out for is the impact of a growing economy on the fall elections. Republicans have partially enjoyed relative strength on most generic polls due to the problems in the economy. As the economy begins to expand, democratic candidates in communities with less structural unemployment (i.e. areas without significant plant closures) will be able to point to the improvement in the economy and make the case that their policies are working.
A key to successfully interpreting research is to realize that polling and market research is a snapshot of today, not tomorrow. When assessing the results of any project, you have to include other inputs and information (such as economic data) to really understand what is happening and most importantly what you will face tomorrow or in November.