Sunday, October 4, 2009
Greenspan predicts unemployment will hit 10%
This article describes Alan Greenspan's prediction that unemployment is going to rise in the 3rd quarter of this year, although growh is expected to rise as well. He predicts that unemployment will reach 10% and likely stay there for a little while before it goes down. Greenspan cites firm's lack of new job openings as a main reason for the continued rise in unemployment. The current unemployment figure is 9.8%, which is the highest since 1983.
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3 comments:
I think that it is very likely that unemployment rate will hit 10 percent this year. The number of job openings is too small if any, and new job openings are not expected in the next quarter. However, I believe that after the third quarter, the unemployment rate will start gradually going down.
I agree... also, there is evidence that the gains that we have made will not be sustained. Because of this, I think that the unemployment rate will necessarily rise a little bit more before it starts to decrease again.
I also agree with Greenspan that the unemployment rate will hit 10%.. but only for that quarter. I do not believe that it will continue to increase. As of right now, I believe that some companies are beginning to recover, however, recovering is a process. They cannot suddenly add many more jobs and keep every single person on staff, with the current state of the economy. Although things are getting better, I do believe we will face a small increase before things begin to move upward. I am confident that after the third quarter, unemployment will slowly decrease.
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