Unemployment to Stay High for Years
Fed officials predict it will take about 5 years to return to normal
By Nick McMaster, Newser Staff
Posted Nov 24, 2009 4:13 PM CST
Michigan state Department of Human Services word processing assistant Rosalind Alexander, helps a client at the Family Independence Agency in Detroit, Nov. 13, 2009.   (AP Photo/Carlos Osorio)

(Newser) – Unemployment will remain higher than normal for years to come, Fed officials predicted today. Even at the end of 2012, the rate is forecast to be between 6.8% and 7.5%—a decent turnaround from the current 10.2% but still about 2 points higher than the figure in healthy times. Even though the economy is technically in recovery, it will take "about five or six years" for the labor market to right itself, the officials said.

Today's projections echo details released from the last Fed meeting, in which the central bank signaled it will leave interest rates low for a while, reports the Washington Post. The main reason: concerns that we're in a jobless recovery. "Business contacts reported that they would be cautious in their hiring and would continue to aggressively seek cost savings," the minutes said.

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Showing 3 of 34 comments
Fondue
Nov 25, 2009 12:58 PM CST
DLY, you can barely handle the change that has happened. What makes you think you could deal with an Obama that has level 23 triple magic capabilities and 100% shield and armor?
Yourself
Nov 25, 2009 12:27 PM CST
oh i'm sorry, we can't fix years of deregulation and mistakes in just one year...
Kenja
Nov 25, 2009 12:08 PM CST
Guess if you can't prove your point you have to resort to name calling DLY.