Global economy impacts Mississippians
STARKVILLE, Miss. (WCBI) – When the economy is changing, you never know how your job may be affected.
Recently, a local industry laid off a large number of its workers.
Whether you work for a small business or big company, the flow of the economy can directly impact your finances.
“The economy both nationally and internationally is evolving a lot. There are a ton of huge factors. Many of them are policy related. We’ve seen fiscal legislation like the ‘One Big Beautiful Bill Act’ come through,” said Dr. Brian Blank, an Associate Professor of Finance at Mississippi State University.
Dr. Brian Blank is an Associate Professor of Finance at MSU.
He said increased tariffs from the United States Government and pending trade agreements are some of the top concerns for many companies.
“All of these things at this particular moment have led to a lot of uncertainty, so businesses all over the country and really the world have stopped the things that they’ll typically do, so they’re just waiting to see how all this plays out,” said Blank.
Higher tariffs can make it more expensive for local businesses to purchase goods imported from other countries.
And when businesses are having to pay more for their products or the materials to make those products, they have a couple of choices: take a loss or find ways to cut costs to make up for the added expense.
And sometimes those cuts are taken on their payroll.
“And so, anytime you’re having to cut back on investments, that can mean that some employees no longer have a place in the organization anymore,” said Blank.
Even though the economy is changing, Blank said overall it is strong and is still growing.
“Unemployment is relatively low, both nationally and in the state of Mississippi. The economy is continuing to add jobs, but there are certainly organizations that are having more difficulty weathering the uncertainties whether it’s related to trade policy or some of the other changes,” said Blank.
The unemployment rate for Mississippi has edged up since the beginning of the year, but at 4 percent, it is slightly below the national average of 4.1 percent.
