A new report projects an increase in the rate of job growth in Kansas this year. There are some economic forces that could temper that growth in the future.
The report from Wichita State University Center for Economic Development and Business Research projects modest job growth in Kansas this year. It’s driven partially by the energy, construction and services sectors.
Jeremy Hill, the center’s director, says factors on the horizon could slow the increase. He says the state’s aerospace industry could be affected by federal budget sequestration, which may reduce military contracts. Also, Hill says the European fiscal crisis could lead to fewer aircraft orders.
“Aerospace is highly dependent on companies globally for the purchasing of planes. And aerospace is one of the drivers to our state economy, so it’s very connected with the global economy,” says Hill.
Hill says there are still questions on how the budget sequestration will fully impact the state’s economy and how further implementation of the federal health care act will affect business in the state.