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NEWS
[ Wednesday, Jan. 29, 1992 ]

Slump spurs anxiety

Collegian Features Writer

Though University student Kellie Schaffer won't be facing the job market for another year, today's economic slump remains in her thoughts.

"My dad works for Westinghouse and they're laying off a lot of people at his plant," said Schaffer (junior-secondary education). "If the layoff would affect him, it would affect me directly."

Schaffer, like many other University students, is sometimes reminded and worried about economic gloom. Whether it's layoffs, a budget deficit around $300 billion or talk of the free-spending '80s, there is a general consensus that times are tough.

For graduating seniors facing a bleak job market or students struggling to finance their education, the recession may spell only frustration, disappointment and anxiety.

But technically speaking, a recession is a six-month drop in the real gross national product and is marked by rising unemployment and a decline in the production of goods and services, said Arthur Welsh, professor of economics.

"The biggest thing to accompany a recession is involuntary unemployment," Welsh said. "You're not producing as much so you don't need as many producers."

The University -- a dominant employer with a steady rate of expenditures -- has given this area a stable base, helping to lessen the economic slump locally, Welsh said.

"The sector feeling it most in the Centre County and State College region is construction," Welsh said. "We probably have had some shaking out, but generally unemployment is lower and the trauma is felt less here than nationwide."

But Welsh warns against a "recession-proof" theory, adding that State College may fare better than the national average if the University doesn't experience drastic cutbacks in its budget.

Local businesses may have been feeling the pinch, as evidenced by widespread pre-Christmas sales, said Norm Brown, president of the Downtown Business Association and manager of the Student Book Store, 330 E. College Ave.

"It appears that December probably would not go down as one of the better Christmas seasons," Brown said.

Maintaining the unique and attractive mix of stores and products that the downtown offers is crucial, especially in these times, Brown said.

"One of the neat things about downtown is the variety," he said. "You can buy a $2 T-shirt or a $400 suit."

"We want to keep the specialty shops," said Brown, adding that State College's variety is a desirable feature which has been imitated elsewhere.

Walking around town last week, Brown said he didn't see as many help-wanted signs as usual, perhaps indicating that local businesses are watching their expenses.

"I don't see the employment picture as good as it was -- to me that is a sign that things are tight," Brown said.

 

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