Unemployment to remain high even though the US economy is growing
Posted by Stephen Cline on February 17th, 2010There are a lot of folks who have high expectations from the US economy for the year 2010, and they may certainly be on track on this. Well, it seems as if there is some reason to be cheerful about the US economy which might be stabilizing, after so long. But the, while the US economy may be showing some signs of recovery, the US Fed Reserve has warned that unemployment could still remain high. Estimates indicate that while the US economy could grow by 2.8% to 3.5% in 2010, the unemployment rate could still vary from between 9.5% to 9.7% in 2010, and could ease down to 8.2% to 8.5% only in 2011. This is certainly not good news enough for people who have lost jobs, and wish to get back into the workforce as soon as possible.
The main reason for this is that consumer and corporate spending is still quite wary, tentative and conscious. This is due to a widespread negative to cautious sentiment of consumer confidence, which is not likely to ease up any time soon. People have burnt themselves hard in the last couple of years and would not like to make the same mistake again, just when the US economy seems coming back on track, after so long.
Tags: unemployment, US economy