Saturday, July 24, 2010
Unemployment Above 9% Until 2012
The White House’s annual Mid-Session Budget Review assumes unemployment will not fall below nine percent until 2012. In other words, the White House believes we will continue to be in a virtual "jobless recovery." In fact, the White House expects unemployment to remain at seven percent until the start of 2014.
The unemployment rate is projected to average 9.7 percent in 2010. This is the average level of unemployment that has prevailed during the first six months of the year. Despite the growth in output, unemployment is projected to decline slowly because, as labor market conditions improve, discouraged workers rejoin the labor force, adding temporarily to unemployment, while part-time workers increase their hours of work.
Even with continued healthy growth in 2011 and beyond, the unemployment rate is projected to fall, but it is not projected to fall below six percent until 2015. Traditionally, an unemployment rate around four percent has been considered a sign of "full employment" conditions.
That is going to put pressure on every business selling products and services to consumers or business customers, and will increase pressure on firms to grow by acquisition, as internal customer growth and average revenue per user will be tough to come by.
read the full report here
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
It Will be Hard to Measure AI Impact on Knowledge Worker "Productivity"
There are over 100 million knowledge workers in the United States, and more than 1.25 billion knowledge workers globally, according to one A...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment