US Job Market Still Very DepressingBy Dipankar Das, Gaea News Network
Friday, July 23, 2010
According to US Federal Reserve Chairman Ben S Bernanke, although, the stimulative monetary and fiscal policies helps to grow the economy moderately, the job market still remains very bleak. He further said that the slow job market in turn is impacting weak housing market. Bernanke also welcomed the recent financial regulation in USA that Stimulus Package was signed into law by US President.
“That legislation represents significant progress toward reducing the likelihood of future financial crises and strengthening the capacity of financial regulators to respond to risks that may emerge. However, much work remains to be done in implementing the legislation. The reforms would place our financial system on a sounder foundation and minimize the risk of a repetition of the devastating events of the past three years.” Bernanke said.
The actual economic growth remains the same to the forecast of Feb and May and the GDP growth is supposed to be 3 percent to 3.5 percent this year. The growth for next year and 2012 is expected to be 3.5-to-4.5-percent. The job market still remains very sluggish despite the fact that the payroll added 100,000 per month in the first half of the year. However, he cautioned that this number is not good enough to lower the joblessness in a significant way. Obama’s approval rating is very low due to the fact that the unemployment remains at 9.5%.
The Fed Reserve Chairman also pointed out the slow job recovery and commented that it needs significant amount of time to restore nearly 8-1/2 million jobs that were lost over 2008 and 2009. He further added that the inflation is going to be 1% throughout the year and will remain very low during the year 2011 and 2012. The Feb Reserve board are also not sure how quickly they can do away with the stimulus package which was designed to stimulate the economy.
Tags: Job Market, recession, Stimulus Package, Unemployment, US Economy