Wednesday
Feb242010
Bernanke: Job Market Remains Quite Weak
Wednesday, February 24, 2010 at 3:26PM
By Benny Martinez - University of New Mexico/Talk Radio News Service
Chairman of the Federal Reserve Ben Bernanke told the House Financial Services Committee Wednesday that he anticipates a moderate pace to economic recovery, but still has doubts regarding the weak state of the job market.
“Some recent indicators suggest that the deterioration in the labor market is abating,” Bernanke said. “Job losses have slowed and the number of full-time jobs rose modesetly...and claims for unemployment insurance have continued to trend lower.”
Record-low interest rates remain a necessity to boost the economy on a national level, he said. But Bernanke explained that his biggest concern about the economy is the job market. He estimated that the unemployment rate will plateau between six and seven percent by 2012, about one percent higher than an ideal five percent, which is necessary to reacquire a sustainable economy.
“[The jobs market] remains quite weak, with the unemployment rate near 10 percent and job openings scarce,” Bernanke said.
To add to his short-term unemployment concerns, Bernanke said the nation's long-term unemployment rate is an issue.
“Of particular concern...is the increasing incidence of long-term unemployment,” Bernanke said. “More than 40 percent of the unemployed have been out of work for six months or more, nearly double the share of a year ago.”
Chairman of the Federal Reserve Ben Bernanke told the House Financial Services Committee Wednesday that he anticipates a moderate pace to economic recovery, but still has doubts regarding the weak state of the job market.
“Some recent indicators suggest that the deterioration in the labor market is abating,” Bernanke said. “Job losses have slowed and the number of full-time jobs rose modesetly...and claims for unemployment insurance have continued to trend lower.”
Record-low interest rates remain a necessity to boost the economy on a national level, he said. But Bernanke explained that his biggest concern about the economy is the job market. He estimated that the unemployment rate will plateau between six and seven percent by 2012, about one percent higher than an ideal five percent, which is necessary to reacquire a sustainable economy.
“[The jobs market] remains quite weak, with the unemployment rate near 10 percent and job openings scarce,” Bernanke said.
To add to his short-term unemployment concerns, Bernanke said the nation's long-term unemployment rate is an issue.
“Of particular concern...is the increasing incidence of long-term unemployment,” Bernanke said. “More than 40 percent of the unemployed have been out of work for six months or more, nearly double the share of a year ago.”
Reader Comments (1)
I can totally relate to this article. A few years before I graduated in Civil Engineering, my classmates were signing contracts with engineering firms on campus for around $65,000. Last year in 09 not one of my classmates received an offer anywhere close to that. And for that matter most didn't even receive an offer. Hopefully things will soon turn around for the better.