New York, NY (PRWEB) August 23, 2005
WhatÂ’s in store for 2006? Research organizations have made their predictions, but unstable oil prices can cause even the most positive projections to take a drastic turn.
According to Michael Maciekowich, National Director of Astron Solutions, organizations need to review 2006 salary budget projections with a cautious eye. “While inflation and unemployment levels have remained steady throughout 2005, this may change as we get closer to 2006. The price of a barrel of oil, now priced in the upper $ 60s, may ultimately have an impact on the nation’s unemployment rate. By diverting spendable cash to the fuel pump, and away from non-durable goods (electronics, etc.) companies may end up with a surplus of goods, causing them to reduce production. These events can lead to layoffs and a higher unemployment rate. Higher unemployment often leads to reductions in salary raises, due to the increased supply of workers.”
However, economists in the federal government are optimistic. The Congressional Budget Office (CBO) http://www.cbo.gov believes that the economy is growing at a healthy pace. The CBO believes that real gross domestic product (GDP), which is the total value of all goods and services, factoring in inflation, over a certain period, will grow by 3.7 percent in 2006, before slowing to a pace of 2.9 percent.