NEW YORK (CNNMoney.com) – The government’s monthly job report on Friday showed that the disastrous labor situation plaguing the nation’s economy is moderating. But the report also underlines an unsettling reality: 8.4 million jobs have been vaporized since the recession began, and digging out won’t be easy.
The unemployment rate fell unexpectedly in January to 9.7%. And businesses shed 20,000 jobs for the month, far fewer than the 150,000 jobs that were lost in December.
OMB head Peter Orszag is giving a press conference just now with Christina Romer, head of the Council of Economic Advisors, on the president’s Fiscal Year 2011 budget. Ms Romer… noted that expected fourth quarter-over-fourth quarter real GDP growth would be 3% in 2010, 4.3% in 2011 and 2012, and would average 3.8% in the five years thereafter. These figures are in line with Fed projections. She then gave the unemployment forecast. At the end of 2010, the unemployment rate, according to the administration’s forecast, will be 9.8%. At the end of 2011, the rate will be at 8.9%. And at the end of 2012, after the next presidential election, the unemployment rate will be 7.9%….
The U.S. economy grew at the fastest pace in more than six years during the fourth quarter of 2009, according to a government report Friday.
OK, when will the job recovery start? We may have 10 percent unemployment for some time.
Some “normative” economics:
California Unemployment at 12.4 Percent
Published January 22, 2010 California , Employment 8 CommentsFrom the Sacramento Bee:
The job losses returned to California in a significant way last month. Some 38,800 payroll jobs disappeared, according to figures released today by the state Employment Development Department.
The state’s unemployment rate clocked in at 12.4 percent for December. That was unchanged from the revised November figure.
Analysts had been hoping that the job losses in California had mostly run their course.
New UCLA study cites heavy impact on schools
Published January 21, 2010 California , Education 6 CommentsNew UCLA study cites heavy impact on schools
One effect, IDEA director John Rogers said today as he released the study, is that the discrepancies between schools serving affluent students and those with high rates of poverty are increasing. The latter are more likely to receive financing from local parcel taxes and voluntary contributions while the latter not only don’t receive extra money but are more likely to experience layoffs and other staff cuts.
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It notes that California was already near the bottom in per-pupil financing before the most recent round of state budget cuts and also fares poorly in academic achievement. “Why is California on the wrong side of this national achievement gap?,” the report asks rhetorically. “One critical reason is that California is on the wrong side of a national resource gap.” Rogers said that California should “grow the fiscal pie” for education.
