Tags: WSJ | Five Percent | Unemployment | Rate | 13 Years | jobs | Away

WSJ: Five Percent Unemployment Rate 13 Years Away

Monday, 18 Jul 2011 12:29 PM

Remember the days of 5 percent unemployment rates, way back in December 2007? They'll be back — in about 13 years, according to The Wall Street Journal.

"U.S. employers have added 757,000 jobs to their payrolls in the first half of this year. That actually wouldn't be so bad if there weren't so many people out of work. The June unemployment rate of 9.2 percent was well above the 5 percent it logged in December 2007, when the recession got under way," the Journal reports.

To get back to December 2007 unemployment rates, not only does hiring need to increase, but the labor force needs to expand as well
In other words, the economy will need to absorb those people who jumped out of their job search and then jump back in again.


That's going to take a long time.

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(Getty Images photo)
"With employment growing just a smidge faster than the labor force, then, the unemployment rate would still be a disappointingly high 8.9 percent in June 2012," the Journal reports.

"The October 2012 unemployment rate — the last one we'll see before Election Day — it would edge down to 8.8 percent. And it wouldn't reach 5 percent until December 2024."

The U.S. economy is showing no signs of heating up anytime soon.

"The possibility remains that the recent economic weakness may prove more persistent than expected,” Federal Reserve Chairman Ben Bernanke has said, according to the Christian Science Monitor.

"The Federal Reserve remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate."

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Remember the days of 5 percent unemployment rates, way back in December 2007? They'll be back in about 13 years, according to The Wall Street Journal. U.S. employers have added 757,000 jobs to their payrolls in the first half of this year. That actually wouldn't be so...
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2011-29-18
 

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