Economist paints a rosy picture for students

Don't look now, but the economy has been improving, slowly but surely.

Of course, that depends on whom you talk to. Economists may tell you we've turned the corner and that we face better days. An unemployed head of a household may still see very gloomy skies overhead.

Somewhere in the middle is Sara Kline.

An associate economist for Moody's Analytics in West Chester, Kline told participants of the Acel Moore Career Development Workshop that they should stay positive about their futures and that, in due time, the economy will turn around.

"The nation has been dealt a huge economic blow, but there are signs of hope for the younger generation entering the workforce," Kline told the 35 students during an hour-long discussion about the economy on Feb. 5.

"Granted [the economy] will take more time, but it is steadily improving," Kline said. She predicted that within the next five years the unemployment rate will no longer be above 9 percent but will drop to its more natural level of 5 percent.

Kline tailored her remarks to her young audience, stressing the need for young adults to focus on college in the next few years as the economy recovers. With such an unclear economic future, a majority of students seem unsure about possible majors. Should their career path be more practical or should students pursue their passions? Kline believes that students "should pick something that is of interest and in which they can find success."

She said the economy has made it extremely difficult for students applying to colleges and universities. Scholarships and financial aid are scarce; however, Kline feels that more schools will increase financial support to students in the coming years.

When asked if she had any tips for students applying for financial aid, Kline replied that she felt the best advice is to be creative and "keep an eye out for anything and everything, whether it is through your high school or the college you are applying to or just a general community-based scholarship."

Kline said endowment funds of many institutions have experienced financial difficulty. "Everyone has struggled, but soon they will start to offer students more." According to Kline, students applying in the next three years should have an easier time securing aid than those who applied during the last few years.

Kline said the biggest question for the economy has been jobs. Why is the unemployment rate so high? When will companies and firms begin hiring again? Kline emphasized that a high unemployment rate is not necessarily an exact representation of the economic situation.

"People are getting discouraged. If they can't find a job, why keep looking," she said.

Kline believes the job market will turn around within the next five years. It will not happen this year or next, because those who are currently employed are putting in more hours and working harder to make sure they keep their jobs.

The downturn in the economy has created uncertainty for both workers and employers.

Companies are hesitant to hire more people when they are able to get so much productivity out of their current employees. But by choosing not to hire more workers, corporations are not boosting confidence in American households, so Americans are spending less, which, consequently, creates less demand for goods and services.

As a final bit of advice Kline says: "It is incredibly important that younger generations be aware of the world around them, how it operates and where it might be going."

So, OK, don't look now. But take a look a few years from now when workshop participants will be college-educated and taking their place in the working world, where they hope to find a dynamic and resurgent economy.