The 25 majors with the highest unemployment rates, according to census data analyzed by Georgetown University:

• Clinical psychology 19.5%
• Miscellaneous fine arts 16.2%
• United States history 15.1%
• Library science 15.0%
• (tie) Military technologies; educational psychology 10.9%
• Architecture 10.6%
• Industrial & organizational psychology 10.4%
• Miscellaneous psychology 10.3%
• Linguistics & comparative literature 10.2%
• (tie) Visual & performing arts; engineering & industrial management 9.2%
• Engineering & industrial management 9.2%
• Social psychology 8.8%
• International business 8.5%
• Humanities 8.4%
• General social sciences 8.2%
• Commercial art & graphic design 8.1%
• Studio art 8.0%
• Pre-law & legal studies 7.9%
• Materials engineering and materials science and composition & speech (tie) 7.7%
• Liberal arts 7.6%
• Fine arts and genetics 7.4%
• Film video & photography arts and cosmetology services & culinary arts (tie) 7.3%
• Philosophy & religious studies and neuroscience (tie) 7.2%
• Biochemical sciences 7.1%
• (tie) Journalism and sociology 7.0%

The 25 majors with the lowest unemployment rate:

• Medical technology technician 1.4%
• Nursing 2.2%
• Treatment therapy professions 2.6%
• Medical assisting services 2.9%
• Agriculture production & management 3.0%
• Industrial production technologies 3.1%
• Pharmacy 3.2%
• Communications & disorders sciences 3.3%
• Elementary education 3.6%
• Special needs education 3.6%
• Miscellaneous education 3.7%
• Mechanical engineering 3.8%
• High school teacher 3.8%
• Theology & religious vocations 4.1%
• Management info systems & statistics 4.2%
• General education 4.2%
• Health & medical administrative services 4.3%
• Transportation science & technologies 4.4%
• Finance 4.5%
• Physics 4.5%
• PE/health education 4.5%
• Criminal justice and fire protection 4.7%
• PE/Park & Recreation 4.8%
• Civil engineering 4.9%
• (tie) Electrical engineering; environmental science; math 5%

The latest and unprecedented S&P downgrading of the country’s credit rating, coupled with continued unemployment troubles we just can’t shake, may be enough to push some folks into a downright panic. Clinically speaking.

That’s especially true if you have people on staff who were about to buy a home, need a loan, etc. So how can you and your company’s supervisors tell if anyone on the team has crossed over the line?

Here’s a rundown of the symptoms as they tend to show up in the workplace — and people’s work.

Spotting the signs

Psychologists say people with no other mental issues can have panic attacks during periods of extreme stress. And in the office, it won’t look like mass hysteria. Or even hysteria at all. Instead, here’s what to watch for at work:

• A staffer is becoming less and less creative. That may mean he can’t come up with solutions to problems on his own anymore.
• The staffer is more focused on doing everything just right … but likely is making more mistakes. That’s because she probably can’t focus well at this moment.
• The staffer is less communicative. There’s a fear of saying the wrong thing when a person’s in panic mode.

So what’s a concerned company to do?

Now’s the time to make sure anyone in a supervisory role is as available and encouraging to your employees as possible. A few ways to do that:

1. An open door policy is a must. Hushed meetings and closed offices will have employees even more nervous. The unknown is often much scarier than the reality. So you don’t want to fuel any fires accidentally.
2. Offer all you can to ease their fears about the financial health of your company or industry. Of course, only do so if it’s realistic.

The Associated Press just completed its monthly analysis of states that are “stressed” and those that are on the rise.

The figures are compiled by tracking bankruptcies, foreclosures, unemployment and other economic indicators, and assigning a “stress” score. Any score above an 11 is considered stressed.

First, the bad news. The five states that came out the worst in the scoring were:

• Nevada, 21.41
• California, 16.72
• Florida, 16.36
• Arizona, 15.27
• Michigan, 14.86

The best states:

• North Dakota, 5.24
• Nebraska, 5.85
• South Dakota, 6.19
• Vermont, 6.87
• New Hampshire, 7.77

Most-recent month-to-month stress levels declined in 34 states and in more than two-thirds of the nation’s 3,141 counties. Year-to-year, unemployment was lower in nearly three-quarters of counties, and bankruptcies and foreclosures declined in nearly half of the counties. Places with lower stress levels in the past 12 months tend to have heavy concentrations of workers in manufacturing, technical, professional and retail jobs. Places with higher stress levels have many people employed in construction, utilities and real estate.

Go here to see the AP’s interactive county-by-county stress-score map.

While there are no specific statistics or studies that have tracked the percentage of current employers who refuse to hire unemployed applicants, recent articles by The Huffington Post, as well as several other local and national papers, explore this dynamic.

In some cases, employers are afraid to hire someone for a high-level position whose skills may have grown dull or rusty over the past few years – years during which the marketplace has changed dramatically, as have the way customers do business and the modes companies use to communicate, manufacture and produce.

According to the Dept. of Labor, there are 5.5 unemployed workers available for every available job (on average). In that type of job market, employers are going out of their way to disqualify candidates they no have very little chance of getting hired.

Rather than have their recruiting people get inundated with hundreds of applications, or waste time interviewing candidates who should’ve never gotten through the door, HR execs have become much more proactive.

One recent article cites an employer in Buckhead, GA, whose job posting bluntly reads: “NO UNEMPLOYED CANDIDATES WILL BE CONSIDERED AT ALL.”

Another employer in Georgia posted an ad for a hands-on, manual labor position that read: “If you have not worked since 2009, do not apply!”

Restaurants, accounting firms, and financial service firms are all posting the same type of ads.

Apparently, “Unemployed” is the new “Prior Experience required.”

While there’s currently no law on the books that forbids companies from disqualifying applicants based on employment status, the current job market is forcing legislators to review labor laws and consider whether tighter regs might be necessary.

Employers, on the other hand, claim they’re just doing their best not to waste their time or the applicants’. Certain positions require top-of-the-line applicants who are on top of their game, according to their argument.

If a company knows what it’s looking for, why should it waste valuable time and resources looking elsewhere?

What do you think about this latest shift in employment practices? Is it ultimately a good thing? A bad thing? Feel free to share your thoughts in the comments section below.

Source: “Help wanted – jobless need not apply,” by Zachary Roth, The Lookout, 2/17/11.

The White House has a problem: State unemployment funds are shrinking. And the Obama administration has decided that an increase in the wage base for the Federal Unemployment Tax Act tax is the way to fix the problem.

In a nutshell, the White House is proposing that the wage base for FUTA tax paid by employers be increased from $7,000 to $15,000.

Under current law, employers pay 6.2% in taxes on the first $7,000 of earnings paid to each worker — a level that’s been in effect since 1983. If the proposal becomes law, an employer’s maximum FUTA contribution per employee would increase from $434 to $930. The increase would go into effect in 2014.

Even with the delayed effective date, several congressional Republicans said an increased cost for employers could hurt the economy and job growth. House majority leader Eric Cantor of Virginia suggested immediately suspending the FUTA tax and making up the difference — $7 billion — with spending cuts.

How bad is the problem?
At least 30 states have exhausted their unemployment funds and have had to borrow $41 billion from the federal government. The biggest borrowers:

• California
• Illinois
• Michigan
• New York
• Pennsylvania

If Congress and the administration make no changes in current law, the borrowing states will start paying interest on the loans in September. Where will they find the money? Most states don’t want to raise taxes on workers, so employers likely would see a special assessment — meaning it’s a pick-your-poison predicament for businesses: pay the state or pay Uncle Sam.

Would the increase be temporary? Economists say it’ll take about decade for states to climb out of the hole.

1. Finance: Between the four major finance/investment companies that made Fortune‘s list, there are nearly 20,000 job openings. 20,000!! A lot of the major finance companies continue to post billion-dollar earnings, despite anemic growth elsewhere. That means opportunity for recruits (and companies) that have the expertise to capitalize.
2. Tech/IT: There are nine tech companies included in this year’s list, including consistent favorites like Google, Cisco and Intel. A lot of economists refer to this as the digital age, an indication that the tech industry is a strong indicator of where the economy’s headed. If the 7,750 current job openings these nine companies are currently offering is any indication, Tech is moving in a very positive direction.
3. Retail: Retail sales rose a remarkable 4% from September to October this year, according to the National Retail Sales Estimate (NRSE). Receipts for the second week in September were up nearly 6% from last year. And overall sales for October were up 1%. It would seem consumers are starting to spend again. As a result, the Retail sector is hiring in a big way again (e.g., Nordstrom, The Container Store and Recreational Equipment are currently looking to fill a combined 5,600 job openings).
4. Food Services: People have to buy groceries, right? But in this day and age, the grocery chains that are in a position to thrive are mostly organic food stores that offer a variety of health-conscious alternatives. To wit: Whole Foods is currently looking to fill 2,000 positions, while perennial giants like Wegman’s and Publix are still hiring at a rampant pace.
5. Business Consulting: Perhaps one of the unique subplots of the current economic crisis is that – despite major cost cuts – a lot of companies are still interested in hiring consultants, perhaps because they’ve never been more desperate for sound strategic advice. Most business consulting companies are billing less per hour, but compensating by fanning out and increasing the number of hours/companies they bill. In order to do so, they need more reliable consultants. Between the three consulting companies that made Fortune‘s list, there are more than 4,000 job openings.
6. Health Services: Hold onto your hats. If Obamacare isn’t repealed or postponed by the recent Republican surge, the numbers of Americans with affordable healthcare coverage is about to skyrocket. Some of the plan’s changes have already gone into effect. Over the next three years, as the full impact of the plan is felt, Healthcare Services organizations including insurance companies, hospitals, clinics and pharmaceutical companies are going to experience rapid (and parallel) growth.

To see Fortune‘s complete list of  “30 Companies That are Still Hiring!” click here.

1. Key employees leave and aren’t being replaced: Obviously, this isn’t an easy sign to spot. But if your HR people regularly monitor (or post on) job sites, chances are they’re tuned into employment trends, including which company’s employees are currently testing the job market the most. That info could be extremely valuable, especially if your company happens to interview candidates who confirm your suspicions (i.e., a top competitor is struggling to remain afloat).
2. Downward (or outward) communication has slowed: If a company has slowed or stopped mentioning new initiatives, special offers and other company news via the Web (e.g., Facebook, Twitter, company blogs, corporate web sites, e-mails, etc.), it could be a sign that forward progress and/or production has stopped for the time being. Consumer (and industry) message boards are a great source of chatter about such things … albeit a somewhat unreliable one. If it’s a publicly-traded company, you may want to keep an eye on quarterly reports to see if you can spot any negative cashflow trends.
3. Salary/hiring freezes: Sure, in many cases this has been a fairly common and effective way for companies to ride out the economic downturn. But the telltale sign at this point will be monitoring how competitors respond as the recession continues to lift. If most of the companies in your industry/region have returned to business as usual, yet one or two remain stuck in spin, they may not be in a position to fully recover. If that is in fact the case, chances are some of their best customers have already felt the impact. That could spell opportunity for proactive salespeople.
4. Expenses/Amenities rolled back: Clamping down on expenses may seem like an effective cost-cutting measure on the surface. In fact, 10-15% of companies have scaled back their expenses to some extent over the past two years. But a recent IHS Global study revealed for every 1% the average company cuts its T&E budget, it experiences a 1.7% decrease in sales. In other words, cutting your T&E budget isn’t only a dangerous gamble, it could be a very slippery slope that leads to more losses. Other signs T&E cuts are more than just a sign of the times: Competitors’ corporate events reduced or canceled as the company regains its footing, and/or competitors’ reps are no longer a fixture at popular trade shows and conferences.

Of course, none of these signs is a surefire indication a company’s about to go under. Still, if you notice one or more of these red flags starting to pop up, it may be worth investigating further. There are valuable business opportunities at stake for companies that can spot – and capitalize on – these warning signs early and often.

Based in part on “How to Tell if a Company’s in Trouble,” by Glenn Curtis, Investopedia.

Retail spending dropped .5% in June, after a 1% dip in May. But the reality is retail sales would’ve seen a slight increase if not for stagnant totals in the auto and gas industries.

A lack of consumer confidence combined with high unemployment has handicapped the auto industry. Auto sales were down more than 2% in June — a negative trend that may not reverse itself until unemployment rates and consumer confidence start to rebound.

A drop in prices accounted for a 2% dip in the gas industry.

Meanwhile, other retail segments enjoyed a slight boost. Department store sales were up 1.1%, and general merchandise sales rose .2% (after a 1% drop in May).

All told, if not for gas and auto, retail sales would have risen .1% in June.

Source: “U.S. Retail Sales Decline Again in June,” New York Times (via the Associated Press), 7/13/10.

The latest positive boost to the economy, a 3.2% jump in the first quarter of 2010, was strongly prompted by consumer spending, according to the Department of Commerce.

Consumer spending accounts for nearly 70% of the U.S. economy, so the recent boom in GDP could be a sign consumers are in a position to spend again.

Still, skeptics argue the recent uptick could be a mirage, spurred on by temporary jobs, stimulus spending and other government programs that continue to plunge the country into debt.

The unemployment rate recently increased from 9.7% to 9.9%, despite the addition of nearly 300,000 jobs nationwide. That means companies are still cutting staff at a faster rate than new jobs are being created.

Until that trend begins to reverse itself, experts warn the economy (and consumer confidence) will continue to be on shaky ground.

What do you think? Is the economy definitely back on track again or are we simply sinking ourselves deeper into debt, long term?

Feel free to share your thoughts in the comments section below.

Source: “Consumers Help Drive U.S. Economy to 3.2%Growth Rate,” by Catherine Rampell, New York Times, 4/30/10.

Just over 1.8 million people voluntarily left their jobs in March. While that number is significantly lower than the pre-recession average of 2.7 million, it’s an uptick from the low point of 1.72 last October.

The statistics, recently released by the Bureau of Labor, show a reverse in employment trends that lasted more than 15 months.

According to a recent Right Management survey, 60% of employees plan to leave their current job as the economy improves. With a higher percentage of companies now hiring again, workers are finding they have more options.

Meanwhile, companies that have employed a more-with-less mentality will need to strike a balance in order to keep top talent from leaving.

Beyond that, there are a lot of employees who habitually jump from job to job to increase their earning potential and advance their careers. Most of those employees have been forced to accept their circumstances over the past few years, which means a lot of employees are now eager to test the job market.

One key takeaway: In a recent Dice.com survey, employees who wanted to leave were asked what would persuade them to stay if they found another opportunity. The top three answers:

• 57% said nothing could convince them to stay
• 42% said higher salary, and
• 11% said a promotion.

Source: “More Workers Start to Quit,” by Joe Light,” Wall Street Journal, 5/26/10.

1. Manufacturing: While manufacturing has represented a major part of the U.S. workforce in the past, automation and several other factors have caused the consistent decline of that sector since 1997 (the last year the industry posted job gains). The demise of manufacturing means a major slice of the U.S. workforce will need to look elsewhere for employment, regardless of how (and when) the economy bounces back.
2. Construction: A lot of construction projects were halted or scrapped as a result of the recession. While construction will always rely on manpower to some extent, the industry has shed well over a million jobs over the past year. Chances are a lot of the roles that have been combined with others or automated as a result of cutting corners will not be made available again any time soon.
3. Finance: A lot of the jobs in the financial sector were related to mortgage securities and credit, two areas that have come under major scrutiny as a result of the recession. In fact, finance has shed nearly 7% of its jobs as a result of the recession. With finance being regulated so tightly these days, most experts predict a lot of those jobs will not return, although they don’t rule out the possibility finance will diversify into other markets.
4. Administrative: So many office processes have become automated these days that once the recession hit, administrative positions and clerks were often the first to go. While the cuts were originally sold as a cost-cutting measure, the advent of e-mail, automated attendants, cell phones and voicemail (among other advances), makes it highly unlikely companies will return to the way things were.
5. General labor: Record stores are falling by the wayside, as are a lot of video stores, mail list providers, and mom-and-pop shops. While some small businesses have simply been gobbled up or trampled by large corporations, there’s a whole other side of the consumer market that’s falling victim to online sales, home delivery, and automated processes. 

Are there any sectors we missed here? Is there any way for these sectors to bounce back or reinvent themselves? Feel free to share your thoughts in the comments section below.

Source: “Even in a Recovery, Some Jobs Won’t Return,” by Justin Lahart, The Wall Street Journal, 1/12/10

The CBS/New York Times poll, which included more than 700 unemployed Americans across a broad range of industries and job markets, found that roughly half of them feel the recession has had a fundamental impact on the way they live their lives. The poll also revealed:

• More than 60% of respondents claimed unemployment benefits weren’t even enough to cover basic necessities
• More than 50% didn’t have health insurance
• Half of respondents reported the need to borrow money from family or friends
• Another half feared falling out of an accepted social class, and
• 40% have moved or considered moving to a place where there are more jobs.

Being out of work also impacted the health and well being of most respondents. Among the survey’s more notable findings:

• 55% of respondents reported suffering some form of insomnia
• 50% suffered some form of anxiety or depression
• Nearly half got into frequent arguments with family and friends
• 40% noticed changes in their children’s behavior as a result of what they were going through, and
• 25% had consulted a mental health physician.

Regarding whom respondents blame for the current predicament:

• 26% blamed George W. Bush
• 12% blame the banks
• 8% blame politicians in general, and
• 3% blame Obama (with 47% saying they approve of the way he’s handling the situation now, and 42% saying they disapprove).

Finally, regarding prospects for the job market to improve in 2010:

• 39% said they anticipate improvement
• 36% expected it to stay the same, and
• 22% expected it will get worse.

Source: “Poll Reveals Depth and Trauma of Joblessness in U.S.” by Michael Luo and Megan Thee Brennan, New York Times, 12/14/2009

Here’s the latest on four key indicators:

1. Inflation is basically flat. That allows the Fed to keep interest rates low, and put less pressure on consumers to save — meaning they can spend more of those hard-earned dollars. One caveat: Low inflation is the goal — if prices drop much more, we’ll be looking at a deflationary spiral which could be nightmarish if left unchecked.
2. The Federal Reserve is optimistic. Fed Chairman Bernanke recently said that the technical indicators show the recession is likely over at this point. But even Bernanke admitted that recovery isn’t likely to pick up steam quickly. “It’s going to feel like a weak economy for some time,” he said at an address at the Brookings Institution.
3. Regional and industry-specific bright spots are growing. Speaking of the Fed, a recent report by the Philadelphia Fed shows growth in regional manufacturing. Similar signs of growth are being seen in other regions. And overall industrial production is up as companies that had slashed inventory start to beef up again.
4. Consumer spending is expected to rise. Despite significant job losses, household net worth is actually up this year — thanks largely to consumers cutting back on spending to attack household debt.
   Bottom line: Consumers have already started putting their own financial houses back in order. So while the free-wheeling spending may not return any time soon, there’s reason to believe that once they see economic stability returning, they’ll start shopping again to relieve some of that pent-up demand.

First, a couple of government reports show:

• From September 2008 (the collapse of Lehman Brothers) until June 2009, the average weekly pay for hourly workers stayed stuck on $612. (Hourly pay actually rose a bit during that period, but that gain was canceled out because a lot of workers had their hours cut.)
• Since June, however, both the length of the workweek and hourly pay growth have crept upward. In August, the average weekly pay hit $618.

Do the rising numbers indicate that the economy really improved? Some say it did, and of course Fed Chairman Ben Bernanke pronunced the recession over. Some economists have another explanation.

They say many companies have decided that cutting wages isn’t worth the aggravation and morale busting that inevitably follow the cuts. So even companies that have been forced to lay off workers have also given surviving employees a little boost in the paycheck. There’s even a economics term for the phenomenon: The Sticky-Wage Theory.

The shadow of unemployment
Still, there’s the shadow of unemployment. It doesn’t translate into lower average wages because the wage figure doesn’t take into account unemployed people, who have zero wages. The result: Fewer workers making a bit more money, meaning the median household income has gone down even while weekly pay has gone up.

Another statistic from the reports: There’s very little “churn” among the unemployed. That is, unemployed people are likely to stay unemployed for longer periods, while people who are working are more likely to hang on to their jobs. That’s a switch from the past, when the economy would produce rapid turnover among the employed and unemployed.

Click here to see the August labor summary from the Bureau of Labor Statistics.

Are you in one of the country’s premier job markets?  A new Web tool from indeed.com reveals which cities offer the most available jobs per unemployed resident. You might be stunned which city ranks head and shoulders above the rest.

The chart lists the 50 largest U.S. markets. The job-to-unemployed ratios are based on numbers from indeed‘s national database of job listings and unemployment rates, so there may be a slight margin of error based on how those markets are shifting, as well as unlisted job postings, etc.

Some of these markets are slightly deceiving because they offer a lot of highly specialized jobs that can’t be filled by unqualified applicants (or vice versa).

Here are the top 10 U.S. cities in terms of available jobs per candidate:

1. Washington, D.C. (six jobs per candidate)
2. Jacksonville, FL (three jobs per candidate)
3. Baltimore, MD (one job per candidate)
4. Salt Lake City, UT (two candidates per job)
5. New York, NY (two candidates per job)
6. San Jose, CA (two candidates per job)
7. Hartford, CT (two candidates per job)
8. Oklahoma City, OK (three candidates per job)
9. Austin, TX (three candidates per job)
10. Boston, MA (three candidates per job)

While these markets offer opportunities in terms of growing business, emerging trends and a constant influx of new prospects, consider the following five markets that were ranked at the bottom of the list:

1. Detroit, MI (18 candidates per job … Whoa!)
2. Miami, FL (10 candidates per job)
3. Riverside, CA  (nine candidates per job)
4. Los Angeles, CA (eight candidates per job)
5. Portland, OR (seven candidates per job)

Click here for the full list of Job Market Competition.

Source: “Indeed Ranks the Most Crowded Job Markets“

Result: No one gets laid off, and at least in the short term, no one loses a chunk of a paycheck. And you get to keep your experienced staff intact, without the need to rehire when business picks up.

As you might have figured out, every state has slightly different rules regarding the program, so you’ll have to check with your state’s labor department to see if and how the program can work for you.

Here’s a list of the states offering such programs:

Arkansas
Arizona
California
Connecticut
Florida
Iowa
Kansas
Louisiana
Massachusetts
Maryland
Minnesota
Missouri
New York
Oregon
Rhode Island
Texas
Vermont
Washington State

if you care about how livable a new town might be, check out these new rankings from the online career consultants at WomenCo.com.

Their rankings tout the American cities that offer the most overall value — to both business and employees. And if you consider contented employees more productive and less costly to manage, the livability of a site could translate into a better bottom line.

The folks at WomenCo.com picked their top choices for U.S. cities based on factors that focus not just on lifestyle and general livability, but also on how the economy has hit employment and wages.

Their criteria  included:

• City growth rates, average salaries and costs of living.
• Average commute time — which, according to experts, has a hugel impact on overall happiness.
• Unemployment figures and  the rate that unemployment has actually increased since February 2008.

And the winners are:

1. Austin, TX
2. San Antonio, TX
3. Salt Lake City, UT
4. Oklahoma City, OK
5. Raleigh-Cary Metropolitan Area, NC
6. Seattle, WA
7. Rochester, NY
8. Portland, OR
9. Denver, CO
10. Honolulu, HI
11. Nashville, TN
12. Virginia Beach, VA
13. Kansas City, MO
14. Pittsburgh, PA
15. Charlotte, NC
16. Boston, MA
17. Buffalo, NY
18. Columbus, OH
19. Indianapolis, IN
20. St. Louis, MO
21. Hartford, CT
22. Louisville, KY
23. Cincinnati, OH
24. Philadelphia, PA
25. San Diego, CA

To get the most up-to-date data on how the economy’s doing — and what your business is likely to face next — keep an eye on these reports from the feds:

1. Employment numbers — The headline-grabbing number is the household survey, but it can be misleading. It’s great for tracking the number of people employed, unemployed, in school, etc. But it doesn’t give the telling details, such as what percentage of people have stopped trying to look for work, or how many people are under-employed.
   A related employment report, the so-called establishment survey, tracks the number of people on company payrolls. That number gives better insight into where the overall economy is. Key to recovery: When job losses finally flatten, prepare for growth in the near future. Employment tends to be a lagging number in a recovery. Demand may pick up before employment numbers actually start to improve.
2. New home sales — Doesn’t matter what industry you’re in, home sales in general are an important factor in economic growth. Every house sold means more furniture bought, home repair services contracted, etc. And that money circulates throughout the region.
   New home sales are of particular weight because the construction and sale of a new home pumps significantly more cash into the economy. Key to recovery: A significant uptick in new home sales in your region may indicate the worst is over in your neck of the woods. But different areas will peak/recover at different times. If the rest of the country is still in the doldrums, be prepared for more stormy weather.
3. Personal income and outlays — This report tracks not only what consumers are making, but how and what they’re spending on, as well as how much they’re saving. It’s a vital glimpse into buyers’ wallets. More importantly, it tracks spending on both products and services so it gives a balanced view of the overall economy. Key to the recovery: Consumer spending is the engine of our economy, until that picks up, both B2C and B2B companies will face significant challenges.
   Note: The monthly retail sales report provides some similar data. But because it combines consumer spending with sales to smaller companies, it’s not always as reliable as an indicator. However, it comes out two weeks before the Personal income and outlays report, so it’s worth a look to get an earlier take on economy.
4. Consumer price index — This is your standard measure of inflation, and it comes in two flavors: The overall CPI tracks all prices across industries. The core CPI excludes food and oil, due to their general price volatility. It’s worth keeping an eye on both CPI measures. While many media outlets focus on the core CPI, the products not tracked in the core CPI tend to be the ones consumers can’t afford to not buy. Heavy increases there can foreshadow decreased spending in other areas. Key to the recovery: While no one wants to see steep inflation, most experts agree deflation would be even worse and would prolong the recession.