WVU Forecast Calls For Employment Rebound In 2010

TIM HUBER

CHARLESTON, W.Va. (AP) — The state economy should begin producing more jobs than it loses around the middle of 2010, West Virginia University predicted in its annual economic outlook Wednesday.

But the recovery is expected to be sluggish and centered on service industry jobs rather than energy. WVU is predicting employment to grow a modest 0.7 percent annually through 2014 as the economy struggles to replace 22,600 lost jobs.

"It takes until 2013 to replace the jobs that we lost during the recession," said George Hammond, associate director of WVU's Bureau of Business and Economic Research. "Essentially, there is light at the end of the tunnel. We've still got quite a bit of tunnel to get through."

The forecast serves as an important tool for state government, which uses it to help formulate the budget and forecast revenue. Based on the latest revenue figures, the state has a $16 million shortfall, which is expected to grow to about $100 million by the end of the fiscal year June 30.

Hammond said coming job growth will be concentrated in professional and business services, as well as the health care, leisure and hospitality industries.