This assignment studies the U.S. gross domestic product (GDP), U.S. manufacturing employment trends, and the state of Illinois employment trends in order to forecast company sales over the next few years. Specifically, this paper analyzes the GDP and the employment trends over the past four years. It also discusses the effect GDP has on the U.S. economy (such as inflation) and how technology and the lack of skilled labor have affected the employment trends. Statistics will also be shared showing the change in GDP and the different employment trends. The consumer price index over the last four years will also be examined to measure the pace of inflation.
Keywords: gross domestic product (GDP), employment trends, inflation, consumer price index (CPI)
Taking it to the Net
So how do you forecast a company’s ...view middle of the document...
So what do these factors mean? Gross domestic product or GDP is the total value of final goods and services produced in a country in a given year. (Nickels, McHugh, McHugh, 2014) Employment trends show the rise and fall in employment in a particular area in a specified amount of time. The consumer price index is a group of statistics that measures the rate of inflation and deflation.
Since the industrial revolution manufacturing has played a major role in America’s GDP.
GDP is used as an important instrument by businesses to make large decisions. If the GDP is rising, companies can use that information to acquire new assets such as buildings and equipment or to hire additional employees. The financial crisis of 2008 was a huge blow to the growth of GDP in the United States. The economy did not start recovering until 2010. Since 2010, the GDP has continually grown year after year. By the end of 2013 the GDP was over 16 trillion dollars as opposed to over 14 trillion dollars in 2009.
Please view the chart below to see the gradual change in GDP:
GDP in billions of current dollars GDP in billions of chained 2009 dollars
2008 14,720.3 14,833.6
2009 14,417.9 14,417.9
2010 14,958.3 14,779.4
2011 15,533.8 15,052.4
2012 16,244.6 15,470.7
2013 16,799.7 15,761.3
GDP percent change based on current dollars GDP percent change based on chained 2009 dollars
2008 1.7 -0.3
2009 -2.1 -2.8
2010 3.7 2.5
2011 3.8 1.8
2012 4.6 2.8
2013 3.4 1.9
(Provided by the Bureau of Economic Analysis)
Current-Dollar and “Real” Gross Domestic Product. (2014, May 29). Retrieved June 10, 2014, from http://www.bea.gov/national/index.htm#gdp
Current Employment Statistics (National). (2014, June 10). . Retrieved June 10, 2014, from http://www.bls.gov/ces/data.htm
Nickels., McHugh., & McHugh. (2014). Understanding Business. 10th Edition. : McGraw-Hill Education.