More than 30 local restaurants to participate with special pricing in February: The Chicago Convention & Tourism Bureau (CCTB) announced its first annual Restaurant Week, to take place February 22-29, offering savory experiences compliments of Chicago's remarkably talented chefs, for residents and visitors alike.

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Through its 21st annual Economic Outlook Symposium and internal research and analysis, the Research Department of the Federal Reserve Bank of Chicago has generated both national and Midwest economic outlook data for 2008.

U.S. Outlook

Thirty-three of the more than 100 participants in the November 30th Economic Outlook Symposium provided forecasts of major economic indicators at the national level. Attendees represented the manufacturing, banking, and auto industries, as well as academia, consulting, and service firms. The group's consensus forecast for several key U.S. indicators is reported below:

	2006   Actual	2007 Forecast	2008 Forecast
Unemployment Rate	4.5 %	4.7%	5.0%
Change in Consumer Price Index (CPI)a	1.9%	3.6%	2.6%
Change in Real Personal Consumption Expendituresa	3.4%	2.5%	2.2%
Change in Real Gross Domestic Product (GDP)a	2.6%	2.5%	2.5%
Housing Starts (millions of units)b	1.81	1.35	1.21
Car and Light Truck Sales (millions of units)b	16.5	16.1	16.0

^a Measured from 4th quarter to 4th quarter
^b 4th quarter average

All major components of real GDP are expected to contribute to the softening forecasted in economic growth for 2008, with most anticipated to expand, but at a slower pace than 2007. In particular, the drag from the housing sector is forecasted to moderate this year, with residential investment expected to fall by 4.0%, compared to a forecasted 15.9% drop in 2007. Light vehicle sales are expected to decline as well, while oil prices are anticipated to decline slightly, but remain above $80 per barrel throughout the year.

Midwest Conditions

The nationwide falloff in residential investment activity is unfolding along various channels and to varying degrees across U.S. regions. Falling residential activity is being felt in consumer spending, manufacturing production (construction equipment, appliances, and materials), the financial sector (mortgage and development financing), real estate, and, of course, in home building itself.

According to Bill Testa, Director of Regional Programs in the Research Department of the Federal Reserve Bank of Chicago, residential investment will remain a concern in the Midwest during 2008. However, it will not likely be as much of a concern as it will be in other areas of the nation, particularly in parts of the West and Northeast. In home building activity specifically, the Midwest may have somewhat of an advantage because construction activity comprises a smaller share of regional employment than in other U.S. regions.

Testa points out that another factor likely to affect the Midwest outlook is the varied pattern of economic conditions in the Midwest from east (Michigan, Ohio, and parts of Indiana) to west (Illinois, Wisconsin, Iowa, and Minnesota). In the east, ongoing restructuring in the automotive industry and a softening outlook for automotive sales and production during at least the first half of 2008, will weigh down the economies of these auto-intensive states. Michigan is the foremost example of this in 2007, with unemployment remaining very high, 7.4% versus 5.0% nationally. As a result, housing foreclosure rates in Ohio, Indiana, and Michigan are running well above the national average.

In contrast with the eastern Midwest states, economic conditions in much of the western portion of the Midwest will tend to be buoyed by capital goods manufacturing and related exports abroad, as well as by strength in agriculture and related (e.g., ethanol) industries. Testa anticipates that as the "business capital city" of the Midwest, Chicago area conditions will continue to reflect a blend of east and west. Registering an average unemployment rate of 5.1% for the third quarter of 2007, the metropolitan area's labor market is modestly more slack than the national average. Chicago's notable growth sectors will continue to include business and professional services, financial services, and leisure and hospitality.

2008: Bottom Line

Nationally and in the Midwest, economic conditions are expected to moderate relative to 2007 activity levels. The worst of the housing market crisis is believed to be behind us, and relatively steady growth is anticipated in consumer expenditures, industrial production, and GDP in 2008. Concerns will continue on some fronts, including the automotive, housing, and energy sectors.

Further summary of the twenty-first annual Economic Outlook Symposium will be published in an upcoming issue of the Chicago Fed Letter.

-- Gretchen Kosarko,
Assistant Director of Research

With William Testa, VP and Director of Regional Programs, Federal Reserve Bank of Chicago and Federal Reserve Bank of Chicago News Release (Economic Outlook Symposium)

-Higher Education Community Unites
-Nominate Your Company for Being Worker-Friendly

Organizations across the business and higher education communities are coming together to better Chicago's workforce. Here are just a couple examples of these organizations' commitment to continue to build the best workforce in the world.

First Chicago-Area Higher Education Recruitment Consortium Established to Attract Talented Staff and Faculty
 
Twenty-two of the region's leading colleges and universities and research, medical and cultural centers have joined together to create the Greater Chicago Higher Education Recruitment Consortium (GC HERC). Through the sharing of information and resources, GC HERC supports its member institutions in attracting outstanding faculty, administrators, and staff, with a particular goal of assisting dual-career couples. In doing so, members also tout the Chicago area as a great place to live and work.

The central component of the GC HERC is a free, web-based search engine (gcherc.org) that includes listings for both faculty and staff jobs at member institutions. The site allows users to link two profiles and find jobs that match both search criteria. Job hunters can search by key word, geographical area, job type or institution. The Web site also includes Chicago resource, media and cultural links of particular importance to those relocating to the area.

Members recognize a need to hire talented faculty and staff and have designed resources to help not only the lead job seeker, but also his or her partner or spouse. Increasingly, job candidates turn down employment offers if their spouses or partners cannot find suitable employment in the area.

"Research suggests that finding appropriate employment for spouses and partners is even more critical when hiring women and minorities," said Mary Harvey, associate provost of the University of Chicago and organizer of the consortium. In addition to the Web site, members will meet to discuss issues of recruitment and retention.

The Greater Chicago Higher Education Recruitment Consortium is the first regional HERC in the Midwest. The University of California, Berkeley founded the first HERC in 2000. Regional HERCs are based in areas including New York City, Southern California, New England, Upstate New York, and most recently Michigan and St. Louis.

The GC HERC sponsoring members are The University of Illinois at Chicago, The University of Chicago, Northwestern University, Fermi National Accelerator Laboratory, and Argonne National Laboratory.

GC HERC members: American Academy of Art, Aurora University, Benedictine University, Chicago State University, City Colleges of Chicago, College of DuPage, Columbia College of Chicago, DePaul University, Elmhurst College, The Field Museum, Harper College, Illinois Institute of Technology, Lake Forest Graduate School of Management, Loyola University, Midwestern University, North Central University and Roosevelt University.

For more information, contact Phyllis Brust, director of GC HERC, 773-834-5440; pbrust@gcherc.org.

Is Your Company Worker-Friendly? 
Nominate it for a WorkforceChicago Award

Many Chicago area companies use cutting-edge and creative policies to keep their workforce sharp. The Annual WorkforceChicago Awards honor organizations that have an exemplary commitment to the learning and development of their employees.

If this sounds like your company, visit http://www.workforcechicago.org/ to learn more about what it takes to win and fill out a nomination application. Nominations must be submitted by February 18, 2008. Past winners include Advocate Healthcare, Deloitte and Touche USA LLP, Accenture and IBM. 

WorkforceChicago is a collaborative initiative that was launched in 2002 by CAEL (Council for Adult and Experiential Learning), in partnership with HRMAC (Human Resources Management Association of Chicago) and World Business Chicago.  WorkforceChicago consists of business leaders who are committed to building a skilled and educated talent pool in their own companies and throughout Chicagoland. 

WorkforceChicago has been endorsed by the Metropolitan Mayors' Caucus, the Chicagoland Chamber of Commerce, the Chicago Workforce Board, and the Mayor's Office of Workforce Development. Mayor Daley supports this initiative and personally presents awards to companies each year at a ceremony attended by business leaders and representatives from government and civic organizations. This year's awards ceremony will be held in June 2008. 

More than 30 local restaurants to participate with special pricing in February

The Chicago Convention & Tourism Bureau (CCTB) announced its first annual Restaurant Week, to take place February 22-29, offering savory experiences compliments of Chicago's remarkably talented chefs, for residents and visitors alike. Chicago Restaurant Week... eat it up! features 34 local restaurants offering three-course prix-fixe lunches for $21.95 and three-course prix-fixe dinners for $31.95 (excluding all beverages, tax and gratuity). Instant online reservations are now being accepted in partnership with OpenTable.com at www.choosechicago.com/eatitup.  

"Chicago continues to be recognized as 'daring' and 'innovative' by the most notable dining and travel experts worldwide," said Mark Theis, CCTB's executive vice president. "We are excited to have received such a terrific response from our member restaurants for this inaugural program and look forward to growing Chicago Restaurant Week substantially each year."

Chicago is quickly becoming the epicenter of innovative dining. Most recently SAVEUR magazine named Chicago "America's New Culinary Star" and devoted its October 2007 issue to Chicago's world-class dining -- the first time the magazine has ever dedicated an entire issue to any city.

Participating restaurants include, 17/west at the Berghoff, Alhambra Palace Restaurant, aria, Atwood Cafe, Bluewater Grill, Bistro 110, Brazzaz, Bucca di Beppo, Cafe des Architectes (Sofitel Chicago Water Tower), China Grill (Hard Rock Hotel), David Burke's Primehouse (The James Chicago Hotel), Devon Seafood Grill, Dine Restaurant, The Drawing Room at Le Passage, Fogo de Chao, Fulton's on the River, The Lobby (The Peninsula Chicago), NAHA, Nick's Fishmarket Grill, Park Grill, Phil Stefani's 437 Rush, Prosecco, Pump Room (Ambassador East Hotel), Riva (Navy Pier), Republic Pan-Asian Restaurant & Lounge, Roy's, Seasons Cafe & Lounge, Shor (Hyatt Regency McCormick Place), Shula's Steak House (Sheraton Chicago Hotel & Towers), Smith & Wollensky, Sullivan's Steakhouse, SushiSamba rio, Zest Restaurant (InterContinental Hotel Chicago).

Chicago Restaurant Week... eat it up! is produced by the CCTB in partnership with American Express, the official card of Chicago Restaurant Week; Chicago Tribune and OpenTable.com.

-- Meghan Risch
Director, Public Relations
Chicago Convention & Tourism Bureau