ED Now

Aaron N. Gruen of Gruen Gruen + Associates shares his 2024 Economic and Real Estate Outlook with ED Now.

Former PetSmart groomer BreAnn Scally recently filed a class action lawsuit in California against the pet retail giant, a move that has brought nationwide attention to Training Repayment Agreement Provisions. Scally took a training course during her time at PetSmart and signed a Training Repayment Agreement Provision (TRAP). The TRAP obligates Grooming Academy enrollees to take on $5,000 of debt as payment for the training. This debt is forgiven if the employee stays with PetSmart for two years. Scally, who resigned from PetSmart after seven months with the company, sued after PetSmart attempted to collect on the debt. Scally, in her complaint, alleges that the training primarily benefited PetSmart and not Scally, so collecting on the ...

The Federal Reserve has raised its targeted federal funds rate by 75 basis points, Chair Jerome Powell announced at a news conference on July 27. July’s tightening is the latest aggressive action the Fed has taken as part of its “war on inflation” this year. The Fed aims to reduce inflation to 2 percent from its June level of 9.1 percent. Powell stated that economic growth must be slower in the coming years for the economy to reach that target. Powell’s remarks made it clear that the Fed believes inflation is the biggest problem facing the U.S. economy. However, the rate hike comes at a time when many Americans fear a coming recession or believe the economy is already in one. The day after Powell’s news ...

In March the consumer price index—a measure of inflation that tracks the price of a basket of goods—grew by 8.5 percent, the largest monthly increase since December 1989. To address this inflation, the Federal Reserve has enacted the first of seven long-expected increases to the federal funds rate. These increases—the first of which was 25 basis points and the rest expected to be 50 basis points—generally cause higher interest rates on commercial and business loans, quelling borrowing and slowing the economy. The Fed’s carefully planned cooling of the economy has been disrupted, however, by the ongoing war in Ukraine and continuing pandemic conditions. In China, a “zero-Covid” policy has forced ...

The pandemic amplified the decline in college enrollment: what does that mean for the broader U.S. economy? Undergraduate college enrollment has been trending downward since 2012, but the COVID-19 pandemic further decreased new student enrollment in degree-granting programs. Between 2019 and 2021, the number of students enrolling in college dropped from 15.4 million to 14.4 million, representing a 6.6 percent decline. A wide variety of factors contribute to this enrollment drop. One factor may be virtual education, as many students do not want to attend classes online. Another huge factor has been a favorable labor market and dramatic increase in wages for entry-level jobs. Unemployment is down dramatically from 2020, and many jobs ...

It is clear that the pandemic has changed life as we know it. One of the biggest changes we have seen is in employment and the job market. With the workplace landscape changing, we have entered a period labeled by experts as the Great Resignation. What this means is that at some companies and in certain industries employees are leaving in significant numbers. People who have worked in jobs that they haven’t loved and with companies that have asked for too much have been able to step back. The pandemic has given them a fresh set of eyes, allowing them to assess their situation. These individuals are reevaluating their priorities and the importance of their family, friends, and personal goals. Additionally, people in the hospitality ...

The pandemic has forced government officials, policymakers, and economics professionals around the world to confront a chicken-or-egg dilemma: Which comes first, health or the economy? With countries worldwide experiencing a vicious cycle of lockdowns, reopenings, Covid surges, and more lockdowns, should officials pursue policies to stabilize (or stimulate) the economy first or combat the pandemic first?

IEDC recently hosted a webinar on the state of automation and AI and its impacts on marginalized communities. The COVID-19 pandemic has accelerated the adoption of automation and AI across many industries, which according to the panelists, will impact low- and middle-wage workers the most. Each panelist began by discussing how their individual EDOs have attempted to focus more on inclusion as a central goal. To achieve greater inclusion, their organizations emphasized removing barriers to employment by partnering with local higher education institutions and reducing transportation barriers for marginalized groups. The panelists outlined how important it is for economic developers to connect EDOs, employers, and the community. They ...