Obama speech yesterday
Obama expects unemployment to remain high until 2020
White House expects on an unemployment rate higher than 5.2% up to 2020. The United States should create more jobs over this period than it expects to lose. This Thursday the White House indicated the maintenance of a raised unemployment rate, not expected to go under 5.2% from here to 2020.
“For 2010, we envisage an average growth of 95,000 positions per month”, declared Christina Romer, chief of the Council of the Economic adviser to the US president Barack Obama, ensuring that the trend was going to become again “positive from the spring”.
Mrs. Romer made these remarks at the time of the publication of the Economic Report, a document of more than 450 pages detailing the economic policy followed by the government since January 2009 and her priorities as regard to actions to come in the future.
It has been announced in the draft budget for 2010-2011 published at the beginning of February by the White House, that the government envisages an average unemployment rate of 10.0% into 2010 which should decrease then, but reach 8.2% in 2012, before going down gradually to 5.2% in 2018, a level to which it should stagnate until 2020, the last year covered by the report.
In comparison, the unemployment rate in the United States was at around 4.6% in 2006, before the great recession, and around 4.0% in 2000 at the time of the explosion of the Internet bubble. Noting that the economic situation improved “in a spectacular way” compared to the beginning of 2009, where the American GDP was in freefall, the report allots this reversal inter alia to the revival program of 787 billion dollars promulgated in February, affirming that this one was the proof of its utility.
There are many challenges to the economic revival of the United States. However, I strongly believe that education, in the form of adult education will be key part of the reconstruction of the economy. In the UK, there has been a huge increase in adult education ranging from business management diplomas to basic IT training to help the unemployed or those seeking a career change go forward in the emerging economy.
