Summers: Unemployment Will Climb Higher

Thursday, 09 Apr 2009 02:43 PM

By Ronald Kessler

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The US unemployment rate is expected to rise above its current 25-year high in the recession-mired economy, the top White House economic adviser, Lawrence Summers, said Thursday.

"I don't think we can hold out the prospect that unemployment would stabilize at the current level," Summers said, speaking to the Economic Club of Washington.

The US unemployment rate jumped in March by 0.4 percentage point from February to 8.5 percent, its highest level since November 1983.

"Unemployment lags a little bit what happens to real economic activity," said Summers, who leads the National Economic Council that advises President Barack Obama on the economy.

"In order to get to keep the unemployment rate constant, gross domestic product (GDP) has to grow at a rate that economists argue all the time about ... somewhere in the range of 2.5 percent," he said.

Thus growth of 1.0 percent would see rising unemployment, he added.

The White House budget plan released in February projects a 1.2 percent GDP contraction for this year.

Summers declined to speculate on how high the jobless rate would rise.

"There are seven cameras there, which means there are seven too many for me to provide a number for the number at which it might be likely to peak," he said.

Summers is a former president of Harvard University and ex-treasury secretary in the Clinton administration,

Copyright AFP 2008, AFP stories and photos shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium

-

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:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
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