Profit from Trends in Government Funding

 

Quarterly Forecast

September 2011

 

Closing the Jobs Gap   The US has the highest rate of unemployment among the world's 10 major developed countries.  The Brookings Institute estimates that the jobs gap - the amount of jobs needed to lower unemployment to pre-recession levels -- is 12.3 million jobs. 

If the US were to create jobs at the average rate experienced in the first half of the 2000s, or about 208,000 jobs per month, it would still take 12 years (until October 2023) to close that jobs gap. 

To keep the current 9% national unemployment rate constant, the US needs to generate 95,000 new jobs each month.  To put that in perspective, the fastest growth sector in the US currently is health care, which is adding only about 25,000 jobs per month.   

 

 

 

914-633-3352

 

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Dear Judie,

 

Maybe Jobs, but Contracts? 

US workers need jobs - but it's not clear who or what will create them.  At a proposed $447 billion, President Obama's Jobs Bill is about half the size of the $787 billion American Recovery and Reinvestment Act (ARRA) of 2009.  That stimulus created 550,000 jobs (Recovery.gov) at a cost of $172,391,273,168 - or more than $300,000 per job.

   

Yet, despite the stimulus, the unemployment rate has held steady nationwide at about 9%.  The US Department of Labor (USDOL) reports that there are about 14 million unemployed nationwide.  Of these, 6 million (42.9%) are long-term unemployed, that is, those without a job for at least 27 weeks (over six months).

 

The Jobs Bill will provide funding to enable states and localities to retain Government jobs, including teachers, police officers and firefighters.  The United Federation of Teachers reports the bill includes "$35 billion to protect teaching jobs."  Without this stimulus, it is likely that the trend of Government shedding jobs would only accelerate:  USDOL reports that since employment peak in 2008, the public sector has lost more than 550,000 jobs.  Economic surveys of local and state Governments indicate another 500,000 public sector jobs are likely to be cut through 2012. 

 

What the Jobs Bill Doesn't Do 

It doesn't invest where the jobs are.  The Obama Jobs Bill does not invest in sectors that are experiencing job growth, which USDOL identifies as including health care / hospitals, and computer systems design.  Instead, investment is concentrated in construction, transportation and the public sector.  Further, it appears that when the funding ends, so will the jobs.

 

It doesn't address growing needs of the poor.  The US Census reports that 46.2 million Americans are living below the poverty line - the highest number reported in the 52 years that the bureau has been publishing figures on it.  Despite this, and despite increased need for investment in housing, food, education, and human services - the Jobs Bill does not provide funding to the nonprofit sector beyond training for jobs that may not exist.  To add insult to injury, the Independent Sector found that the Jobs Bill will incentivize nonprofits at only 66% of the payroll tax breaks given to corporations.  

 

It doesn't improve Federal contracting to small business.  According to the American Small Business League, small businesses are "cheated out of as much as $200 billion in Federal contacts annually" because the US Government fails to enforce its own goals of allocating 23% of all Federal contracts to small businesses.  The Huffington Post quoted Obama Administration figures that indicate 65% of its contracting dollars are awarded to Fortune 500 companies and other large businesses.  Senator Mary L. Landrieu, chair of the Senate's Committee on Small Business and Entrepreneurship estimated (April 2010) that increasing contracts to small businesses by just 1% would create more than 100,000 new jobs. 

 

About Proposal Pro, Inc.

In this competitive environment, you need an edge. Proposal Pro writes to win Government contracts - helping businesses and non-profit organizations to secure the large-scale, multi-year contracts that ensure their growth and profitability regardless of the economic climate.  We offer technical writing, complete proposal preparation and strategic consulting that get results for our clients.  Since 1995 we have helped our clients to secure more than $500 million in contract awards.

 

Is it Your Turn to Win?

Proposal Pro's Write to Win™ training materials provide the inside information that savvy proposers use to win large-scale contract awards. Our audio CD reveals what to read an RFP for, what the evaluators want to see, and what mistakes to avoid. In addition to providing a step-by-step review of a Government RFP, each disk includes the worksheets and forms that we use to create proposals that evaluators respond to - with contract awards!  And remember, the purchase of training materials is a tax-deductible business expense.
 
To purchase, contact us at 914-633-3352 or visit our website at
http://www.wingovtcontracts.com\

 

Contact Us

For further information or a free 10-minute consultation, contact:  

Judie Eisenberg
President
Proposal Pro, Inc.
914-633-3352
info@proposalpro.com
 

Send Story Suggestions, Questions or Comments to

info@proposalpro.com

 

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