Tags: Economists | Unemployment | years | payrolls

Economists: Unemployment to Stay at 9% for Years

Thursday, 06 Oct 2011 07:36 AM

The government's monthly unemployment rate, measured by nonfarm payrolls, has hovered around 9 percent lately and will stay at those levels for years to come, economists say.

Markets have been hinging on monthly nonfarm payroll data, which have disappointed this year.

Now, more investors are embracing a new reality: 9 percent unemployment rates are here to stay for a while before falling back down to pre-recession levels.
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"It's very conceivable that you could have this 9 percent rate for the next two, three, four years," says Nadav Baum, executive vice president at BPU Investment Management in Pittsburgh, CNBC reports.

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(Getty Images photo)
"That doesn't mean companies aren't making money. It's not going to take an unemployment number of 7 or 6 or 5 percent to get the market going."

The economy added no jobs in August, and going forward, only seriously unpleasant surprises would shock the market these days.

"For the most part people are looking past the jobs picture, with the exception of if you get a number way off estimates," says Phil Silverman, managing partner at Kingsview Management in New York, CNBC adds.

"Then you'll have some movement. But everybody's seen it time and time again."

Many companies want to hire but complain not enough people possess the right skills set they seek.

In May, a ManPower survey showed that 52 percent of U.S. employers say they were having difficulty filling mission-critical positions, up from 14 percent in 2010, U.S. News and World Report.

"That clearly speaks to the skills gap that exists," says Thom Ruhe, director of entrepreneurship for the Ewing Marion Kauffman Foundation, U.S. News and World Report adds.

"So we've got this paradigm of millions that are unemployed, yet there are literally hundreds of thousands of jobs that are available if we had the right skilled labor to put there, so there's a challenge."

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The government's monthly unemployment rate, measured by nonfarm payrolls, has hovered around 9 percent lately and will stay at those levels for years to come, economists say. Markets have been hinging on monthly nonfarm payroll data, which have disappointed this...
Economists,Unemployment,years,payrolls
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