91.7 Ann Arbor/Detroit 91.3 Port Huron 104.1 Grand Rapids 91.1 Flint
Play Live Radio
Next Up:
Available On Air Stations

University of Michigan economists predict higher wages, more jobs in US

The Michigan Unemployment Agency will cut over 400 jobs reports an article from The Detroit News.
flickr http://j.mp/1SPGCl0
Work share programs allow employees who see their hours cut collect partial unemployment benefits

In 2016,  the U.S. economy will grow at the fastest pace in 10 years, according to the University of Michigan's annual economic forecast.

They're also predicting annual unemployment will drop below 5% next year, for the first time since 2007.

The forecasters say nearly five million new jobs will be added over the next couple of years, which could be especially good news for part-time workers seeking full-time jobs.

“If you’re working double jobs at different establishments, you may be able to switch to a single job or get more hours at one place that pays more,” says Daniil Manaenkov, a University of Michigan economist.

Some workers should see their wages go up, too.

“Wage growth has really been a disappointing aspect of the recovery so far,” says economist Gabriel Ehrlich. “As the labor market continues to tighten, we see workers regaining some of that bargaining power that they haven’t had for the last several years. So we are forecasting wages to start to increase more rapidly than they have been.”

The forecasters also predict the Fed will raise interest rates next month, for the first time in nearly a decade. 

Related Content