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Onvia Predicts Job Growth And Increased Government Spending Transparency In 2011

SEATTLE, Dec. 28, 2010 /PRNewswire/ -- Onvia (Nasdaq: ONVI), the leading provider of gBusiness solutions and the creator of the stimulus-tracking website Recovery.org, predicts that the government will remain a significant catalyst for economic recovery in the coming year as stimulus dollars continue to reach states and cities. This prediction, along with a report on the stimulus' impact in 2010, is included in Onvia's 2011 Government Market Outlook Report, released today.

2011 Government Market Outlook Report: http://onvia.com/sites/default/files/pdf/2011_gmor.pdf

Onvia's report includes the following findings on government spending during 2010:

  • The American Recovery and Reinvestment Act (ARRA) – Nearly two years after the act's passage, just 30 percent of the stimulus money allocated to ARRA projects has reached the contractors and subcontractors that perform the work and create private-sector jobs.
  • Job Creation - Over 800,000 private-sector jobs were supported at least in part through stimulus-related projects in 2009 and 2010, but the majority of these jobs were temporary.
  • gBusiness Trending - Government spending is approaching 50 percent of GDP, a level not seen since World War II.
  • Outsourcing – Government-agency outsourcing increased by 25 percent in 2010.
  • Cost of Goods Purchased - The influx of companies turning to government contracting as a source of revenue has driven down the prices of the goods and services purchased by government agencies. Over the course of 2010, government-contract values declined to just 45 percent of budget estimates, which has been devastating to small businesses in particular.

Onvia expects that 2011 will be a strong year for government contracting at all levels, and that transparency in government spending will continue to improve. In addition, Onvia predicts that job creation will be the primary focus of policy efforts and discretionary federal spending decisions in 2011.

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