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Staffing Industry Economic Forecast for 2018

The world’s population rose to 7.5 billion in 2017 and as we reach closer to the end of the year, a few more thousands of people will be born and as the global population continues to rise, the more consumers will demand and the more businesses will be pressured to supply products and services. 

According to the most recent forecast released at the Federal Open Market Committee meeting on December 13, U.S. Gross Domestic Product (GDP) will rise to 2.5% in 2018, similar to the percentage growth of 2017 and in comparison to the 2.1% growth in 2016. But they are also saying that the increase in GDP will drop to 2.1% in 2019 and 2.0% by 2020. Unemployment rates will drop to 3.9% in 2018 and 2019, but rise to 4.0% by 2020. Which is an improvement compared to the 4.1% rate in 2017, and the 4.7% rate in 2016.  

During the meeting, Federal Reserve Chair Janet Yellen revealed that a lot of workers are part-time and would prefer full-time work. The forecast shows that most job growth is in low-paying retail and food service industries.  

“Moreover, the economic expansion is increasingly broad-based across sectors as well as across much of the global economy,” Yellen stated in her annual address to the U.S. Congress. “I expect that, with gradual adjustments in the stance of monetary policy, the economy will continue to expand and the job market will strengthen somewhat further, supporting faster growth in wages and incomes.”

Inflation will be 1.9% in 2018 and rise to 2.0% by 2019. We had 1.7% increase in inflation in 2017 and yet these rates were lower than the 2.1% rate in 2016 compared to the 0.7 percent inflation experienced in 2015. The low rates in the previous years were caused by declining oil prices. U.S. manufacturing is forecast to increase faster than the general economy. Production will grow by 2.8% in 2018 and yet growth will slow to 2.6% in 2019 and 2% in 2020.

As for our Florida economy, we are expected to surpass the national growth rate. The housing and construction sector is expected to see the fastest growth, with an expected annual average rate of growth of 5.2%, followed by professional and business services growing at 4.5% annually. In addition, Florida economists predict wages to grow by 3.7% year-over-year. 

“In the South Florida metropolitan area, construction, wholesale trade and education and health services were the fastest growing sectors year over year, and education and health services also added the most jobs, 18,000. After a rough September, leisure and hospitality gains were solid for the month and year over year,” The Miami Herald reported. 

With this positive outlook for both the national and Florida economy, we can honestly say the best is yet to come, especially for the hospitality industry. Miami Music Week 2018 is just around the corner. Hotels and restaurants are getting prepared. The economic effects of Ultra Music Festival to the surrounding businesses will be gigantic and will assist in pushing South Florida’s hospitality sector throughout the rest of 2018. Despite what 2018 and beyond brings, we at RMG Staffing is fully equipped to continue to provide our current and future clients with the best human resource in the industry.

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