Tuesday, September 7, 2010
Comment: As Bob Chapman outlined on the show today, once the real figures that the U.S. Labor Department hides are factored in, real unemployment is over 21 per cent – approaching great depression levels.
The jobless rate in the U.S. is likely to approach 10 percent in coming months as the economy fails to grow quickly enough to employ people rejoining the labor force, according to economists at BofA Merrill Lynch Global Research and Morgan Stanley.
Private payrolls climbed 67,000 in August, after a gain of 107,000 the previous month, and the unemployment rate rose to 9.6 percent, Labor Department figures showed Sept. 3. The economy expanded at a 1.6 percent annual rate in the second quarter, down from 3.7 percent in January through March.
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Employers including government agencies have added 723,000 workers to payrolls so far in 2010, showing it’ll take years to recoup the 8.4 million jobs lost during the recession, the biggest employment slump in the post-World War II era. Still, the August employment report eased concerns the economy will falter and may postpone action by Federal Reserve policy makers aimed at bolstering the recovery.
“Growth is too sluggish to successfully bring down the unemployment rate,” said Michelle Meyer, a senior economist at BofA Merrill Lynch in New York. “At this stage, about one year into the recovery, this was still quite feeble job growth.”
This article was posted: Tuesday, September 7, 2010 at 11:45 am