WASHINGTON (AP) — The unemployment rate jumped almost half a point to 9.7 percent in August, the highest since 1983, reflecting a poor job market that will make it hard for the economy to begin a sustained recovery.
"It's good to see the rate of job losses slow down," said Nigel Gault, chief U.S. economist at IHS Global Insight. But "we're still on track here to hit 10 percent (unemployment) before we're done."
As long as Americans remain anxious about their jobs, consumer spending isn't expected to rise enough to power a rebound from the recession.
Analysts expect businesses will be reluctant to hire until they are convinced the economy is on a firm path to recovery. Many private economists, and the Federal Reserve, expect the unemployment rate to top 10 percent by the end of this year.
Of course you know it takes 12+ months to actually SPEND the money the Govt. approved and then another 3-6 months for the effects to take place - you would expect results this fast would you? You are too smart for that......
ReplyDeleteWell, judging from the urgency to pass the Bill without allowing the the time for proper review and analysis so that the economy would be immediately "jump-started", one would think that the uses for the funds were already identified and ready to be funded. Instead only the porkulus earmarks have been funded, and moneys allocated to states are being used for present infrastructure improvements instead of new "shovel-ready" projects which actually would be stimulating. Also, only about 25% of the stimulus funds have been distributed so far...so I ask: "What was the fr%#*king rush in the first place" and "How can the economy be stimulated if the funds are not being spent on new projects?" In the meantime, unemployment continues to soar...now approaching 10%...and the economy continues to sink. All the Stimulus Bill did was add a $ One Trillion of new debt to future taxpayers (our kids) of America. Thanks BO!
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