In a Reuters Blog it has just been reported that Goldman Sachs is projecting unemployment to continue its slow rise throughout 2010 and not peak until mid 2011. Such a view is contrary to that of many economists who have predicted a peak about a year earlier.
A continuation of high unemployment for such an extended period would be considered disastrous to both the economic recovery and to the political futures of many of those in Washington, and would probably guarantee a single term to the President. And while there will probably be many who will disagree, the projection is in line with a POST I did just a couple of days ago in which I outlined why “normal” levels of employment are at least a decade away.
Regardless of what actions the administration’s “jobs summit” takes, the country has millions of unemployed who must be absorbed back into the work force before full employment can be realized. This single issue will haunt the administration and keep us from experiencing a robust economy for many years, and its effects have yet to be fully realized.
It certainly looks as if the “jobless recovery” will be just that—jobless. And such a recovery is no recovery at all.
The Housing Guru: The one source for all your housing questions
Comments(19)