Volcker Says U.S. Jobless Rate to Remain Above 6% for Two Years

[Purveyor]

By Julia Leite - May 15, 2013
Growth in the U.S. remains too sluggish to cut the jobless rate quickly, leaving it a “long way” from satisfactory levels, according to former Federal Reserve Chairman Paul Volcker.

The unemployment rate may remain above 6 percent for at least another two years, Volcker said at a Brazilian-American Chamber of Commerce event in New York.

The economy “is growing, but not fast enough to reduce the unemployment rate in the way we would like to see,” Volcker said. “It’s declining because the labor force is not rising, and we’re getting a little more employment, but it’s a long way from being satisfactory.”

The U.S. unemployment rate dropped to 7.5 percent in April from 7.6 percent in March and 8.1 percent a year earlier. The rate was last below 6 percent in July 2008.

The Federal Reserve called the current jobless rate “elevated” in a May 1 statement. “Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated,” the Fed said.

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http://www.bloomberg.com/news/print/2013-05-15/volcker-says-u-s-jobless-rate-to-remain-above-6-for-two-years.html

[byeya]

1. I'd say Volker has the knowledge and experience to know. He was never what I considered

worker friendly during his term as Fed president but aside from being pro-big business, he's not a nutter.