Thread: Pimco: U.S. Jobless Rate a Deeper Problem

Pimco: U.S. Jobless Rate a Deeper Problem

Friday, November 6, 2009 10:29 AM

NEW YORK -- The U.S. unemployment rate, which rose more than expected in October to 10.2 percent, confirms a "deeper and more protracted" problem in the labor market, Mohamed El-Erian, chief executive of bond giant Pacific Investment Management Co (PIMCO), said in an interview on Friday.

"Today's unemployment numbers confirm that, unfortunately, the problem is becoming deeper and more protracted," El-Erian told Reuters.

"It's not just the increase in the headline number to 10.2 percent. It's also about the longer-term nature of unemployment, the increase in underemployment, and the prospect for only a very gradual recovery."

Payrolls fell by 190,000 workers last month, compared with a drop of 175,000 anticipated by economists, the Labor Department said. The jobless rate was the highest since April 1983 and had gained from 9.8 percent in September.

El-Erian said: "This jobs report will place unemployment even more front and center on the political agenda. The challenge for the government is that unemployment will get worse before it gets better, and there is no quick way to counter this unfortunate development."

http://moneynews.newsmax.com/economy/un ... 82696.html

Originally Posted by AirborneSapper7

The challenge for the government is that unemployment will get worse before it gets better, and there is no quick way to counter this unfortunate development."

The government will try to claim that allowing more "immigrants" will cause more jobs to be generated...

Originally Posted by millere

Originally Posted by AirborneSapper7

The challenge for the government is that unemployment will get worse before it gets better, and there is no quick way to counter this unfortunate development."

The government will try to claim that allowing more "immigrants" will cause more jobs to be generated...

Right! They will! And they'll be as wrong about that as everything else they've been wrong about lately.

This will be a jobless recovery which means it won't be a recovery at all. Employers aren't going to be rehiring, they're going to be off-shoring, not rehiring.

In previous periods of economic woes, we had protected trade policies, at least some modicum of immigration enforcement and an active domestic oil and gas drilling industry. This time we have none of that. You won't see a new net job increase anywhere in our economy except in government and health care until we reverse immigration and trade polices, lift the bans on oil and gas drilling, and I strongly urge converting to the FairTax to bring home what we've already lost, prevent further off-shoring of our manufacturers, and end the War on Drugs to stop the economic drain that has on our economy through an illegal black market.