High Unemployment Rate for Years

From Brad DeLong:

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%….


8 Responses to “High Unemployment Rate for Years”

  1. 1 Logan C. Songer February 3, 2010 at 2:30 PM

    How many new “workers” enter the workplace every year? People who graduate from varying schools who will be looking for jobs is in the millions every single year. Not only will we need to replace all the jobs that have been eliminated, we need to add hundreds of thousands of jobs every year just to meet the demand of all the new people enter the workplace! It will take years for this to happen. However it will happen eventually, especially once the banks start lending again, and their is growth to promote new hires!

  2. 2 Michelle Benton February 3, 2010 at 2:44 PM

    Any movement in the positive direction is, well, positive. As long as the plan set in place shows a progression of some sort, I think the economy will drag itself out of this slump. More jobs mean more consumer spending which means more production. Once we figure out how to make money in different ways then what we have been, the jobs will come. What do we have that other countries want and need? I think those answers will create jobs.

  3. 3 Econ Consumer February 3, 2010 at 5:21 PM

    The quotes from Christina Romer on Fiscal 2011 is interesting. Our economy seems to be slowly turning around. I do notice people still out shopping and buying goods. At Starbucks, they drive thru is still packed. I usually encounter lines at Starbucks but could it be because many other Starbucks have closed. I don’t know of any Starbuck that have closed in my area. As I look inside, I see many people sitting and enjoying coffee. Although I do not go as often as before especially since the prices keep going up. I think I will play it safe and be conservative especially with the economy slowly turning around.

  4. 4 Ruby S. February 3, 2010 at 8:52 PM

    This is some exciting news! However, it does seem a bit optimistically unrealistic by way of how the unemployment rate is currently. Its hard to imagine the unemployment rate to suddenly decrease as quickly as is being proposed, but it has to go down eventually so that is the good news. This gives hope to people for the future and will hopefully come true in upcoming years.

  5. 5 Anna Hernandez March 7, 2010 at 3:43 PM

    Romer is giving, what I think to be, a reasonable prediction in what direction she thinks unemployment will go in. Although each year seems to have a 1% difference, it is still a positive difference that will be felt as the years pass. Many thought Obama would be the answer to our prayers, but they were wrong. One man cannot solve a problem as large as unemployment and a declining economy. Only time can cure a wound so deep, but Obama can attempt to improve the economic situation.

  6. 6 Kara Yamamoto April 2, 2010 at 6:02 PM

    There are many “workers” entering the workforce each year. With high school students and college students looking for job opportunities and our economy the way it is right now, the increase in job demand has increased. The unemployment rate rapidly increasing is making it hard for everyone to survive in our economic state. Hopefully things will take a turn and there will be a growth in promotions and business again once our economy turns around.

  7. 7 angela April 29, 2010 at 6:56 PM

    the economy is going in the right direction, unemployment is slowly going down. In march the unemployment rate was 9.7. It differs only 0.1 from the forecast at the end of the year. Then, we are going in the right directions considering that unemployment rate reach its peak at 10.1%.
    Hopefully things will change for the best.

  8. 8 Ciara Pedroncelli May 18, 2010 at 2:56 PM

    It is really great to see that the unemployment rate is expected to keep decreasing. Any increase would not be a good thing. It seems like it is going to stay really high though which is a little shocking to me. The problem with economics is that it is all about a perfect balance and perfection is something that is just not possible. We do not want a huge deficit but to stop spending and increase taxes too much at this point in time could hit the country really hard and push us back into a recession. I think that it is important for right now and maybe a little bit longer that the government keep spending and just deal with the deficit. No one wants to be in a recession again.

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