White House: 10 percent unemployment ‘within months’

June 22, 2009

WH spokesman Robert Gibbs echoes what his boss said recently:

The U.S. unemployment rate is likely rise from already high levels to 10 percent in the next couple of months, a White House spokesman said on Monday.

“I think the president has said this, and I would certainly say this, I think you’re likely to see unemployment at 10 percent within the next couple of months,” White House spokesman Robert Gibbs told reporters.

The U.S. unemployment rate already stands at 9.4 percent, the highest level in about 25 years, and many analysts believe it could continue to climb despite the $787 billion economic stimulus package passed early this year by Congress.

Earlier this year, the Obama administration had predicted the unemployment rate would peak at 8 percent before beginning to fall toward the end of 2009.

4 comments

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I can hear it now; ‘sure it’s not working the way we thought and hoped for – but can you imagine how much worse it would be if we hadn’t done anything.’

At least they’re trying. Get used to the mantra. At least they’re doing something.

What they’re doing is conditioning [some of] us with their drivel.

Posted by Hank Reardon | Report as abusive

Let’s be honest here, Jimmy. 10% is not the real number. It’s more like 16%. Add the 5 points on top of unemployment that David Wyss (accurately) predicts as the credit card loss-rate, we’re looking at a serious problem.

We need to see that stimulus money spent NOW. Where is it? Who is collecting the interest? Where does that income go? WHERE IS THE MONEY?

Posted by JMichael | Report as abusive

I agree with the 16% estimate for current unemployment. New Jersey has implemented mandatory unpaid days off across the board, saves money but more importantly, saves jobs. It dampens the pain by spreading it broadly but does nothing for economic growth. Right now, in some states employers are able to cut back hours on 40 hour/wk workers and the Federal gov. steps in to pick up the difference. The “10% unemployment #” is not remotely credible or realistic given the mitigating factor of the jump in increased partial unemployment. This strategy is a temporary fix and doesn’t go to the heart of the problem – How to promote growth. The first Stimulus was poorly constructed and will not instigate economic growth or confidence.

On another front — the Treasury has gotten itself into a bit of a hole on it’s “Buy America Bonds”. These are for new, shovel ready projects and are muni’s that are not tax exempt. For two years 2009 & 2010, municipalities can issue unlimited amount of taxable debt. This hastily created program was also poorly constructed. The popularity of the program far exceeded the Treasuries estimates and instead of costing the Fed $91 million in 2009 and $340 million in 2010 has already cost $250 million in the first 2 months and is on track to cost a couple of billion per year by the end of 2010.

This is another example of unintended consequences and Haste Makes Waste.

Where are the Grown Ups?

Posted by Siobhan Sack | Report as abusive

The closest person to a grown up in the administration is, dare I say it, Hillary Clinton…closeted at State.

Certainly appearing to denigrate freshment everywhere; this entire cabinet {and supporting staff) is analagous to the incoming high school freshman class; a bunch of 15 year old snot nosed louts hanging out with the school bullies, entranched in the belief that ‘they’ are the coolest.

In fact, they are naive apologists with no hopes of discovery.

Posted by Hank Reardon | Report as abusive