Government Industry Forecast

February 6, 2012
Industry Intelligence from First Research, a division of Hoover's (a D&B company)
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

Govt Spending on Goods & Services Grows Steadily

US government purchases of goods and services (excluding compensation of employees) are forecast to grow at an annual compounded rate of 3 percent between 2011 and 2016. Data Published: October 2011.

QUARTERLY INDUSTRY UPDATe

Debt Increase Draws Concern - The US debt now equals the value of the national economy, a mark that has economists concerned. Money owed to the federal government's creditors, combined with IOUs to government retirement and other programs, surpassed $15.23 trillion in early 2012, according to USA Today. That figure exceeds the latest official estimate of the value of all goods and services the national economy produces in a year: $15.17 trillion. Long-term projections further show that debt will grow faster than the economy, as President Obama's 2012 budget suggests debt topping $26 trillion in a decade. The White House and Congress agreed in 2011 to slash $1 trillion from federal agencies over 10 years; in addition, $1.2 trillion in spending cuts are set to take effect in 2013.

Law Eyes Federal Intern Hiring - With half the baby-boomer-heavy federal workforce eligible for retirement over the next decade, a new law aims to hire more federal interns into permanent jobs. The Federal Internship Improvement Act (FIIA), an amendment to the defense spending bill passed by Congress in late 2011, requires agencies to hire more college and graduate students who already work as interns. The law is one attempt to standardize and improve what has so far been a scattered approach to federal internships, and encourages agencies to examine why so many interns are not landing in permanent jobs, according to The Washington Post. Under FIIA, the Office of Personnel Management is encouraged to maintain an intern database, and agencies are required to appoint someone to coordinate intern programs and interview outgoing interns about their experience.