Aspiring for a U.S. job? Wait for another 7 years
By siliconindia   |   Wednesday, 07 October 2009, 15:19 IST   |    9 Comments
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Aspiring for a U.S. job? Wait for another 7 years
Bangalore: The U.S. economy has lost 263,000 jobs in September, a 26-year-high rise in unemployment rate at 9.8 percent. Even if U.S. economy recovers it will take seven years to wipe off job deficit, according to a report. The report is titled 'America's New Post-Recession Employment Arithmetic'. It says that erasing the job deficit would require substantial and sustained employment growth in the country. "Because of the severity of the 2007-09 employment losses due to recession, the U.S. faces a significant employment deficit as it confronts the realities of a post-recession future. Even if the nation could add 2.15 million private-sector jobs per year starting January 2010, it would need to maintain this pace for more than seven straight years (7.63 years), or until August 2017, to eliminate the job deficit," the report forecasted. The report is authored by Edward J Bloustein School of Planning and Public Policy's Dean, James W Hughes and an economist at the school Joseph J Seneca. Since December 2007, when the U.S. economy officially slipped into recession, the count of people without a job has shot up by 7.6 million to as much as 15.1 million. "The 2007-2009 recession is the worst employment setback in the U.S. since the Great Depression," the study stated. Recently, even U.S. President, Barack Obama said that the record job losses being witnessed were certainly a "sobering reminder" that progress comes in fits and starts and the U.S. would need to grind out this recovery. The key conclusions of the report stated that a long period of job growth would be needed just to eliminate a ballooning employment deficit stemming from a deep, lengthy recession. Several new business-cycle dynamics imply that the employment recovery may be delayed significantly even after the recession ends. "The once recession-resistant services sector may now be much more vulnerable to job losses and global competition and thus, may be a less vibrant source of employment growth going forward," the report said.

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