Tags: Pimco | Jobs | Gains | Growth

Pimco’s Gross: Jobs Gains Won’t Stoke Real Growth

Friday, 07 Oct 2011 10:03 AM

The United States added 103,000 net new jobs in September, which exceeded expectations but isn’t nearly enough to fuel more meaningful economic growth, says Bill Gross, founder of Pimco, the world's largest bond fund.

The economy needs to add 200,000 to 250,000 new jobs per month for a while if the U.S. is to return to pre-recession levels of activity, Gross tells Bloomberg.

"This report screams ‘decent,’ it doesn’t scream ‘pretty good,’" says Gross.

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"I don’t think Barack Obama has been very good for the economy and I don’t think Mitt Romney would be either; neither camp recognized the problem in terms of job creation,” Gross says.

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Bill Gross
(Pimco file photo)
“We need to, yes, to have currency revaluations, which the Republicans are opposing. We need in some cases penalties, tariffs where applicable," Gross said.

"We need a buy-American, produce-America type of policy in order to create jobs."

Many analysts were expecting the U.S. to add around 60,000 jobs in September, which would have been an improvement from the zero jobs added in August.

However, the unemployment rate still remains at 9.1 percent, well above pre-recession levels, and the nation should not breathe a huge sigh of relief and brand troubled economic times as a thing of the past and look forward to sunny skies and green pastures ahead.

"The September performance is more of a dead cat bounce than real progress," says Peter Morici, economist at the University of Maryland, according to CNBC.

"Jobs creation will remain inadequate to keep unemployment from falling in the months ahead, especially considering the mass layoffs recently announced in banking and pharmaceuticals that will be effected in the months ahead."

Uncertainty in Europe will continue to plague the U.S. economy.

"Businesses remain reluctant to add workers," says Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, Bloomberg adds.

“Much of the weakness in hiring can be blamed on uncertainty.”

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The United States added 103,000 net new jobs in September, which exceeded expectations but isn t nearly enough to fuel more meaningful economic growth, says Bill Gross, founder of Pimco, the world's largest bond fund. The economy needs to add 200,000 to 250,000 new jobs...
Pimco,Jobs,Gains,Growth
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2011-03-07
Friday, 07 Oct 2011 10:03 AM
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