The Congressional Budget Office points out a in a report issued yesterday that the unemployment rate above 8% represents the longest sustained period of excessive joblessness since the depression.
They also predicted unemployment would remain above 8% until 2014.
After three years with unemployment topping 8 percent, the U.S. has seen the longest period of high unemploy
And, despite some recent good news on the economic front, the CBO is still predicting that unemployment will remain above 8 percent until 2014. The report also notes that, including those who haven't sought work in the past four weeks and those who are working part-time but seeking full-time employment, the unemployment rate would be 15 percent.
The CBO made its comments in a report examining the long-term effects of joblessness, and possible policy options to boost employment, including unemployment insurance reforms and job training programs. The report came at the request of Democratic Michigan Rep. Sander Levin, but Republicans quickly jumped on the chance to bash President Obama's stimulus program, which is also reaching its three-year anniversary today.
"The stimulus is a stark reminder of how the president got the policies he wanted, and how those policies have failed the American people and are making things worse," said Texas Republican Rep. Jeb Hensarling.
Obama's approval numbers are on the rise, but that recovery may be short lived. The economy still isn't creating enough jobs to bring the unemployment rate down to a manageable level. And in the coming months, many of the 4 million Americans who have become too discouraged to even look for work will be re-entering the job market and putting upward pressure on that jobless rate. There has been such a pent up demand for jobs that temporary reductions are expected.
But many anaylsts expect the rate will be at 8.5% or more by election day.