US Unemployment to hit Ceiling in 2011

Unemployment in the US to Peak in the next Two Years

Summary: The unemployment rate in the United States is most likely to peak in the next two years as the economy failed to get fast enough after long months of recession.

Nobel Prize winner Paul Krugman said that it was based on the previous data on economic crises that the US faced, saying that it will be a continuing recession until 2011.

Despite recent reports that the recession is finally over, Nobel Prize winner and economist Paul Krugman on Thursday said that the high unemployment rate in the United States is most likely to hit the ceiling in the next couple of years due to slow recovery process.

In a statement, Krugman said that the labor sector has to endure another two years, 2011 at the earliest, before it could say that it is out of the hook. He said that high jobless rate in the US will remain despite in the coming months as the global economy struggled to get up fast enough after being knocked down by the recession.

“Despite the global economy showing signs that it has recovered from the recession, it is still ‘unacceptably poor,’ which could lead to a ‘double-dip’ plunge,” said Krugman, who is a Nobel Prize winner for economics in 2008.

He pointed that the effect of the recession in the labor market could take its toll up to 2010, saying that high-unemployment rate could even get higher by next year. Krugman said that the data was based on studies conducted on previous crises faced by the US.

According to the data from the Labor Department, the joblessness in the US reached a 26-year high posting some 9.7 percent drop in August.

“It is a continuing recession,” he said.

US Unemployment to hit Ceiling in 2011

Unemployment in the US to Peak in the next Two Years

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