Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Ahmed Kathrada's funeral highlights divisions within the ruling ANC party

Read more

MEDIAWATCH

It's Not EU, It's Me

Read more

BUSINESS DAILY

Markets muted as UK begins Brexit proceedings

Read more

THE DEBATE

'Thank you and goodbye': Clock starts on Brexit negotiations (part 1)

Read more

THE DEBATE

'Thank you and goodbye': Clock starts on Brexit negotiations (part 2)

Read more

ENCORE!

Film show: 'Ghost in the Shell', 'The Confession' and Jean Rouch centenary

Read more

FOCUS

Italy: Anti-establishment mayor of Rome faces grim reality of power

Read more

MIDDLE EAST MATTERS

Refugees of rap: Using music to speak out about the Syrian war

Read more

THE POLITICAL BRIEF

Rise of populism: Could far-right leader Le Pen be France's next president?

Read more

Business

Unemployment expected to hit 10 percent

Text by NEWS WIRES

Latest update : 2009-06-17

US unemployment is expected to hit 10 percent in 2009 despite a fall in job cuts, US President Barack Obama said in a television interview on Tuesday. The US jobless rate soared to 9.6 percent in May for the first time in 26 years.

AFP - US President Barack Obama said Tuesday that unemployment was expected to hit 10 percent this year as companies cut payrolls to cope with prolonged recession.
  
Asked during an interview with the Bloomberg television network whether the jobless rate, which surged to a 26-year high of 9.4 percent in May, would reach 10 percent, the president said:"Yes."
  
Queried whether the double-digit rate would occur this year, Obama also replied in the affirmative but added that jobs would continue to be lost even as the recession that struck in December 2007 eased.
  
"Yes. I think that what you've seen is that the pace of job loss has slowed, and I think that the economy is going to turn around.
  
"But as you know, jobs are a lagging indicator. And we've got to produce 150,000 jobs every month just to keep pace, just to flatten this out."
  
The latest Labor Department's monthly report, seen as one of the best indicators of economic momentum, offered conflicting signals about a weak labor market, but suggested that the pace of massive job cuts appeared to be easing.
  
Some 345,000 nonfarm jobs were shed in May -- much lower than the 520,000 expected and about half the monthly decline of the past six months.
  
But the unemployment rate, based on a separate survey of households, rose sharply from 8.9 percent to a worse-than-expected 9.4 percent, the highest level since August 1983.
  
Some said the labor report, along with revised jobless figures for March and April, showed the recession-ravaged economy may have hit bottom, consistent with the notion of "green shoots" of recovery cited by Federal Reserve chairman Ben Bernanke.

Date created : 2009-06-17

COMMENT(S)