Here’s what Gallup and their weekly economic findings tell us about last week: its first half ending 2009, its second starting the new decade.

Americans’ views of the country’s economic prospects are much improved, with 43% saying the economy is “getting better” versus 39% the prior week and 38% a month ago……Overall, Americans enter the new year with their most optimistic views of the U.S. economy since the recession began two years ago.”

“Currently, 24% of employees say their companies are hiring while 23% say their companies are letting people go. ……While job-market conditions have stabilized over the past several months, Gallup’s monitoring shows virtually no improvement in hiring — an essential if the economy is going to grow in 2010.”

Throughout 2009, Gallup’s weekly consumer spending figures were down significantly from 2008, likely representing a “new normal” era of consumer spending. As a result, consumer spending might be expected to match and even exceed last year’s “new normal” spending averages. Last week’s average was $59, compared to $70 the week before. Much of that difference is attributable to last minute spending before the Christmas holiday.

Conclusions?
In a nutshell, consumer spending and economic confidence may run different paths in 2010. Spending will probably stay tempered. Year over year comparisons, remember, use a significantly lower base (2009), so saying 2010 will be better is very relative. Economic confidence, based on a sense of survivor relief will continue to rise. Both are influential factors, but one is tangible, the other somewhat etherial. Gallup’s point is accurate: an improvement in hiring (employment) is “an essential if the economy is going to grow in 2010.”

So, what does this have to do with employee engagement?

• Employee concerns about disposable income remain active…and so “distractive.”
• Employment uncertainty continues…and so adds stress which can reduce on-the-job engagement.
• Leaders and managers focus more intently on business survival, a focus which may not take in the value of employee engagement.

The remainder of January’s posts here will explore specific, tactical ways to stimulate employee engagement and business success in 2010. Check in tomorrow.

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Tags: economic prospects, Employee Engagement, outlook 2010