A local business professor says the economy has bottomed out, but economic recovery will take time.
Indiana University Southeast professor Uric Dufrene says unemployment likely peaked in June. But it isn’t yet clear where new jobs will come from to lead the recovery.
“We’ll likely see the unemployment rate, locally, remain above 8% all next year. And as a result, we’ll probably see the unemployment rate as the biggest threat to a sustained recovery,” he says.
The unemployment rate for the Louisville area has decreased slightly in the last six months, and University of Kentucky economics professor Ken Troske says significant job growth will be slow.
“We’ve lost a dramatically large number of manufacturing jobs over the course of this recession—jobs that probably aren’t going to be coming back anytime soon,” says Troske.
Troske says education and health are two fields that could help spur a recovery. The professors made their comments on WFPL’s State of Affairs.