Tags: Jobless | Rate | Election | Day

Analysts: Jobless Rate Won't Dip Below 8 Percent by Election Day

Tuesday, 10 Jan 2012 07:49 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The nation's unemployment rate may be easing, but it won't break below 8 percent by Election Day in November, leaving it above the 7.8 percent rate registered when Barack Obama took office, analysts forecast.

The unemployment rate dipped to 8.5 percent in December, which was better than expected, although the economy isn't adding enough people to make a serious dent in the jobless numbers.

If the economy can create about 268,000 new jobs a month between now and November, the country may break the 8 percent mark, says Mark Zandi, chief economist at Moody’s Economy.com, according to the Christian Science Monitor.

That's a tough task, considering the economy added a net 200,000 in December, a busy month.
_________________________________________________________

71% Disapprove of Obama on the Economy — Gallup Poll
And 76% of Americans think it will get worse! Find out how you can immediately improve your own financial situation by watching the Aftershock Survival Summit now.

_________________________________________________________

"I don’t think we’ll see consistent job gains at that pace," says Zandi.

The labor force remains small, which helps the headline unemployment rate fall and make the situation less bad than it really is, says economist Robert Brusca of Fact & Opinion Economics in New York, the Christian Science Monitor adds.

Fewer people looking for work means fewer people who can be classified as unemployed.

"It used to be you needed job growth of 150,000 [a month] to keep the unemployment rate from rising," because of the expanding population, says Brusca.

"Now, it might be as low as 85,000 to 90,000 jobs per month."

Other experts are optimistic in light of December's jobs figures, but are still cautious.

"The tide is beginning to come back in," says James Glassman, senior economist at JP Morgan Chase in New York, according to Bloomberg.

"We’ve got a long way to go. This is all positive, though, that we’re actually moving forward, and that’s an important trend.”

New York Federal Reserve President Dudley, however, has said the labor market is not out of the woods yet and adds that more monetary easing may be necessary to ensure a balance of healthy unemployment rates and prices stability.

“Because the outlook for unemployment is unacceptably high relative to our dual mandate and the outlook for inflation is moderate, I believe it is also appropriate to continue to evaluate whether we could provide additional accommodation in a manner that produces more benefits than costs,” Dudley said in a recent speech, according to Bloomberg.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved