The industrial core of the Midwest is facing a hesitant recovery, plagued by the exodus of manufacturing jobs in the 1980s and a prolonged slump in consumer confidence, according to a report by the Conference Board.
The Rust Belt states of the Midwest and Northeast are likely to trail other parts of the U.S. due to their loss of factory jobs, said the study released Wednesday by the New York-based business research organization.
During the `80s, the two regions` share of the nation`s manufacturing jobs fell to 42 percent from 49 percent, said the Conference Board survey. At the same time, every other region saw a spurt in factory jobs, the survey noted.
Much of the Midwest`s fate is linked to the state of the auto industry, so its short-term outlook is boosted by expectations of the industry`s slow recovery for the last half of the year.
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But the region is beset by high unemployment and slow income growth, which have weakened many states` economies. As a result of business slowdowns, four out of the five states in the region trimmed their budgets last year, according to the survey.
The Midwest region counted by the Conference Board takes in Illinois, Ohio, Indiana, Michigan and Wisconsin.
The number of factory jobs in the region hit a peak in 1969, and has been declining every since, the study pointed out.
The Conference Board said the Northeast and Pacific regions will have the greatest financial problems, while encouraging prospects await the Plains states, stretching from Kansas to South Dakota, and the East South Central states of Kentucky, Tennessee and Alabama.