Monday, April 06, 2009
As if the economy wasn’t experiencing enough trouble already, a “monstrous problem” may be heading this way later this year. That’s when estimated 700,000 unemployed Americans are expected to run out of their unemployment benefits, with most unlikely to find employment due to the fact that the job market is still shrinking. The unemployment rate is currently 8.5%, and some economists predict it will reach 10% by the end of this year. It is uncertain if Congress will extend benefits again after doing so twice last year.
Wayne Vroman, an economist at the Urban Institute, called the situation a “monstrous problem,” while another economist said that even if the recession begins to end later this year, it won’t feel that way for many Americans. “What comes next, I’m afraid, will be the mother of all jobless recoveries,” said Bernard Baumohl, chief global economist at The Economic Outlook Group. “While we may emerge from recession from a statistical standpoint later this year, most Americans will be hard-pressed to tell the difference between a recession and a recovery the next 12 months.”
-Noel Brinkehoff
Recession Persists, but Jobless Benefits Ending (by Christopher S. Rugaber, Associated Press)
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