Index report promising while governor unveils job-creation strategy to jump start economy

The Goss Institute for Economic Research delivered good and bad news with its recent release of the overall index for the Mountain States region. The leading economic indicator for the three-state area including Colorado, Wyoming and Utah, climbed above growth neutral for July and points to improving economic conditions in the months ahead.

The overall index, or Business Conditions Index, rose sharply to 51.5 from June’s weak 41.4. An index of 50.0 is considered growth neutral with recent readings weak but improving. The July employment index inched higher to a less-than-healthy 43.5 from June’s 40.9.

The region lost jobs at a rate of 5.0 over the past three months and surveys indicate they will continue but at slower pace, says Dr. Ernie Goss, the director of the Goss Institute for Economic Research. Nearly 48 percent of business buyers said they expected more layoffs in 2009.

“On a more positive note, readings over the past several months indicate that the region's leading economic indicator has bottomed out, with the region's Business Conditions Index is likely to continue its upward trend in the months ahead,” Goss says. “I expect the regional negatives to get less negative in the months ahead as the Federal Reserve’s accommodative economic policy, federal deficit spending and a stabilizing housing market have positive impacts.”

As far as the housing market, Goss also had a positive report: “Very low interest rates, both short-term and long-term, a stabilizing housing market and aggressive federal economic policy have clearly lifted the economic outlook of supply managers in the Mountain States Region, while at the same time they have contributed to upward pressures on prices. We have yet to record any restocking of inventories for raw materials and supplies. However, I expect replenishments in the second half of 2009 to help stimulate the regional economy.”

Goss' overall outlook was promising, as well: "Colorado's economy is slowly crawling back to growth neutral according to our survey. The state is not likely to experience any positive growth until the final quarter of 2009," he was reported as saying.

Meanwhile, Colorado Gov. Bill Ritter recently unveiled a statewide job-creation strategy in hopes of quicker and stronger economic recovery.

Ritter says the Jobs Cabinet, established in 2008, will help create a highly skilled and educated workforce and improve the competitiveness of Colorado business. It is comprised of top business, economic development, education and work-force development experts, along with several members of the Governor’s cabinet.

The report, titled “Economic Competitiveness through Collaboration, Talent Development and Innovation,” offered five major recommendations:

• Collaboration: Strengthen, expand and align existing — but isolated — local education, economic development and work-force training programs to better meet the needs of the work-force.

• Engagement: Do a better job talking to and engaging employers in the job-training process so that education, economic development and work-force-training providers have a better sense of what businesses need.

• Marketing: Aggressively promote work-force development programs so Colorado businesses can use those programs instead of spending money on more expensive in-house training programs.

• Information: Develop a coordinated Web site that provides business with easy access to local work-force resources and information.

• Leadership: Provide senior executive leadership from the Governor’s office to spearhead implementation of these recommendations, measure progress and make adjustments as necessary.

“Government alone cannot fix this economy or create more private-sector jobs,” the governor said in unveiling the strategy. “But we can do our part. We can create a better business-friendly environment. We can strengthen relationships and break down silos. And we can do a better job asking businesses ‘what can we do for you?’ rather than sticking to business as usual.”