GRAND RAPIDS, MI (WKZO AM/FM) – The economic recovery roller coaster continues in West Michigan, with the overall mood of West Michigan business leaders still mixed.
That’s the assessment of Brian G. Long, director of Supply Management Research in Grand Valley State University’s Seidman College of Business says the current recovery resembles a “lopsided W.”
Long says in a W-shaped recovery, the economy begins to recover rapidly, but then falls into a second period of decline. He said it is also known as a double-dip recession as the two economic declines create the shape of a W.
“We know the COVID-19 recession has resulted in displaced workers now seeking work, and we know from our survey respondents that there are at least some job openings that may absorb some of these frictionally unemployed workers,” said Long. “This is especially true for our automotive parts producers. However, it is doubtful the West Michigan industrial economy can soon absorb all of the recently unemployed workers. Hence, a lopsided ‘W-shaped’ recovery is most likely.”
Long surveyed local business leaders during the last two weeks of October.
Long says the national economy appears to be on its way to a “V-shaped” recovery, where a quick and sustained recovery takes place after a sharp economic decline.
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