Fed Projects Unemployment Above 7% Through The End Of 2014
“Given that growth is projected to be not much above the rate needed to absorb new entrants to the labor force, the reduction in the unemployment rate seems likely to be frustratingly slow,” Federal Reserve Chairman Ben Bernanke told the House Financial Services Committee today. “Indeed, the central tendency of participants’ forecasts now has the unemployment rate at 7 percent or higher at the end of 2014.”
CNS News reports that this would break a post-WWII record for consecutive months above a 7% unemployment rate.
With job growth not able to keep up with population growth, and with the unemployment rate shrinking only in so far as Americans are giving up and leaving the labor force, this is a recipe for lost American decade.
We aren’t going to see real recovery until the government stops trying to stimulate jobs with spending.Tags: Economy, jobs