U.S. non-farm payrolls produced anemic growth of 41,000 jobs in May, and real estate/publishing titan Mort Zuckerman doesn’t expect improvement anytime soon.
“This is an unnervingly jobless recovery,” he wrote in the Financial Times.
The strong GDP growth of the fourth and first quarters — 5.6 percent and then 3.0 percent — should have sparked strong gains in employment, Zuckerman explains. But the reverse has occurred instead.
“We are going to have to develop policies and government support to deal with the long-term jobless who become less employable the longer they lack a regular job,” he wrote.
As a result, economic growth will likely be limited for the next five to eight years, Zuckerman says.
And that’s bad news for the economy.
“The Great Recession is being starkly revealed as a global crisis with the U.S. sputtering on every cylinder,” Zuckerman wrote.
Star economist Arthur Laffer says coming tax hikes will hurt the economy too.
“My best guess is that the train goes off the tracks and we get our worst nightmare of a severe 'double dip' recession,” he wrote in the Wall Street Journal.
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