Because this is the Washington Post reporting on the region's economic activity, we must take this news seriously.
Washington area is beginning to bounce back from recession, economists say
Trips to France. Free iPads after interviews. How about $5,000 in hiring referral bonuses. Wow. Party like its 1999 or 2007 depending on your bubble preference.
The article sites three sectors that are doing well in this rebound: hotels, retailers and hi-tech startups. Even though the WaPost reporter does not include the defense-spending sector, CACI is adding serious numbers of new workers even though the firm is in the War, Destruction and Orwellian Surveillance business.
The article does not mention that lobby shops have been doing a brisk business lately. With a pro-corporate Republican-majority House, Fortune 500 clients will dumping money from wheel barrows on these legal/lobbying firms.
Back to the points in the article:
1. Retail shops are not an awesome economic engine. When you are talking $8-$12/hour for floor work, those workers cannot add much to the economy with low wages in a high-cost of living region.
2. Hotel business. So Marriott and Hilton are expanding executive positions in the region. This has a bigger multiplier effect for the local economy. These are probably six-figure salaried jobs that will help local retailers and restaurants--especially those businesses located in Bethesda, McLean, North Arlington, and upper northwest DC.
Too bad Hilton bailed out on California to move here; thus damaging an already battered Los Angeles economy. Too bad Marriott Corporation was able to bleed serious millions of dollars in the form of tax breaks and subsidies from the Maryland tax payer so the company can remain HQ'ed in Bethesda.
3. Hi-Tech start ups. The article cites two businesses but that's all. The venture capital funding is no where in the same galaxy as 1999. Without a doubt, federal government budgets are still an important lifeline to local tech companies. The CACI and ManTech examples in the article prove this. It's much easier to score a $20 million contract from the Department of Homeland Security then to beg for cash from venture capitalists in Silicon Valley or New York City.
The article does not mention that certain industry sectors in the DC area are still in the BLECH state. The BLECH list includes:
Home Mortgage Lending
Commercial Real Estate Finance
Home Real Estate Sales
Federal Government Employment (Hiring freezes, today. Serious job cuts tomorrow. In 2012, if the GOP gets a majority in the US Senate and they have a dude in The White House, we are talking a federal pink-slip of epic scale).
Journalists. (Reporters are losing jobs at the major newspapers, political news sites, and in the smaller suburban news rags).
There might be more sectors that I am not aware of.