November 5th, 2008
01:49 PM ET
5 years ago

Obama will struggle to create jobs

Obama at an economic summit last month.
Obama at an economic summit last month.

NEW YORK (CNNMoney.com) – Here's the challenge facing President-elect Barack Obama as he weighs how to create more jobs: another half-million jobs likely will be lost between now and Inauguration Day.

That's not even counting the 200,000 jobs that economists believe employers trimmed last month, according to estimates from Briefing.com. The October jobs report will be released this Friday.

The unemployment rate is expected to climb to 6.3% from 6.1%, which would match the worst reading of the decade. And economists all seem to agree the worst is yet to come.

At some point next year the unemployment rate is forecast to pass 7%, a level not seen since 1993.

And the job losses of 200,000 or more a month are expected to be the norm, not the exception, in the coming months, as the full impact of the credit crisis is felt more keenly on Main Street.

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Filed under: Candidate Barack Obama • Economy
soundoff (389 Responses)
  1. Weaksauce

    People thought it was bad the past 8 yrs...prepare now for a new and more turbulent downward spiral

    November 5, 2008 02:10 pm at 2:10 pm |
  2. Andy J, NY

    Obama will create jobs by waving his magic "Change" wand.

    duh, you Republicans don't know he can do that?

    November 5, 2008 02:10 pm at 2:10 pm |
  3. Chris from St. Louis

    Nay sayers are already at it!!! We can't create jobs overnite .... It's going to take some time, but it will happen.

    RealityKing .... your company is using a wrong excuse to not to hire. Obama's tax policies will not go into effect for at least another year ... Taxes depend on the 'profit' your company makes. I'm not sure a slight increase in 'taxes' on 'profit' would affect hiring.

    November 5, 2008 02:10 pm at 2:10 pm |
  4. Brian from Fort Mill, SC

    Tony, NC November 5th, 2008 2:01 pm ET

    The senior writer for Money Magazine is recommending that we all sell our stocks that are not in a retirement account before the end of the year. Otherwise be hit by Obama's increase in capital gains next year. It's going to be a long year…
    --------------------–
    Can you say "Bill Clinton"? Obama is simply going to put things back the way they were under Clinton. You remember, when we had a balanced budget?

    You probably don't remember because Bush made you forget.

    November 5, 2008 02:11 pm at 2:11 pm |
  5. Shara Smith

    Don't be blinded CNN Political Team. Yoiu all wear Halloween masks. I used to watch your network till you all went too far to the left. Just wait a few more months and see if you all rave over this man as you did last night.

    November 5, 2008 02:11 pm at 2:11 pm |
  6. KLEE

    No matter who won this election it would be the same regarding the job and economic situation. You guys are crying even before Bush shuts the door on his Presidency! whats up with that. Suck it up – we have for all these 8 years.

    November 5, 2008 02:11 pm at 2:11 pm |
  7. PDX Gal

    RealityKing, so sad that your likely imaginary company could not consider paying their CEO's 30 times the worker's wages instead of 400 times their wages.
    BTW- fear still isn't working. But I guess you didn't happen to see a world full of celebration on TV in the past few hours.

    Welcome to your world of insignificance.

    November 5, 2008 02:11 pm at 2:11 pm |
  8. D. Williams

    So, your company, without any details of what a new tax plan will be, put on a hiring freeze?? I think RealityKing that your company was in the process of doing that anyway.. decisions like that are not made over night.

    November 5, 2008 02:11 pm at 2:11 pm |
  9. Havoc

    RealityKing. Please tell us how Pres.elect Obama's win costed you anything, yet.

    November 5, 2008 02:12 pm at 2:12 pm |
  10. T California

    Shocker....Glad I worked 15 years to build wealth so I can now spread it around to those that sat and chose to do nothing.......ain't America great?

    November 5, 2008 02:12 pm at 2:12 pm |
  11. hypatiab7

    Once Obama is in office, your small company will receive tax
    breaks that you would not have gotten under McCain, It's time for you to understand that McCain lied to you. As long as your company makes under $250,000 per year, you will get tax breaks.

    November 5, 2008 02:12 pm at 2:12 pm |
  12. Laura

    RealtyKing–so you want us to feel sorry for you? Sorry but I do not. I am trying to figure out how to pay the light bill, I bet the owner of your small company does not have that problem.

    November 5, 2008 02:12 pm at 2:12 pm |
  13. FreeNLovIt

    To Tony

    Cant you all put Country First and donate your money to taxes? If I was rich, and America needs my taxes, I will pay to make America a STRONG country. ( I tithe 10% to 15% to church faithfully, knowing it will add value. It's painful but it is the right thing to do)

    It's sad people are afraid to pay taxes.

    November 5, 2008 02:12 pm at 2:12 pm |
  14. Not the case...

    Reality King, when your small company starts to bring in more net profits to due to the releif and increase of consumer spending Obama is looking to achieve. Your 35 employee based company will be able to afford to bring on more people. The economy is shambels right now and Obama's tax hasn't even been implemented, so don't blame your company's hiring freeze on Obama.

    November 5, 2008 02:13 pm at 2:13 pm |
  15. Uncle Fester

    RealityKing November 5th, 2008 1:56 pm ET

    My small company of 35 employees put a freeze on hiring today. A direct response to Obama's win costing us more in tax dollars, not due to the current state of the economy…

    bull sheet

    November 5, 2008 02:13 pm at 2:13 pm |
  16. carlos

    I don't think Obama realize how hard it is to create job. But i do think it is more easy to lose thousand of job. Next year will be the worse of it all. Obama will struggle with it along the way. People will began to see that what Obama has promise will not come easy. People will than know that Obama was all talk and a dream that will not come true. Good luck to all those Obama voter. Enjoy your 4 years of chaos and disaster.

    November 5, 2008 02:13 pm at 2:13 pm |
  17. Real Talk

    How can Obama have caused a hiring freeze three months before he is even inaugurated, and on top of the the Bush cuts will be in place until 2010. I'm calling you on your B.S. Your job may be on a hiring freeze but you are lying about why.

    November 5, 2008 02:13 pm at 2:13 pm |
  18. karen-phoenix

    Some of you people who are very, very uneducated, go back and ready what it took after the crash of '29. History can help all of you understand the uphill battle Barack and Joe have taken on!!!! These two very educated and intelligent men are about the only ones that possible could get us out of this mess!!! God Bless them both and the World!!!
    READ HISTORY!!!!

    November 5, 2008 02:13 pm at 2:13 pm |
  19. Lee in Illinois

    This is a sad time for the US.

    We now have an inexperianced 1/2 White, 1/2 Black man in the most important role of our nation.

    I cannot understand why everyone is so quick to say he is African American. He is equal parts of black and white. His white mother stood by him, hisblack father did not.

    Its not the color of his skin that I am upset with, but his lack of experiance.

    However the black population sees it differently.

    Lets see if CNN being the bias news network that it is, will post this comment !!!!!

    November 5, 2008 02:14 pm at 2:14 pm |
  20. Toy Seller

    As a small (3 employees) business owner, I've calculated that my taxes should now be going down, and I'm already seeing a minor spike in sales. I expect to do a lot better than if McCain had won.

    November 5, 2008 02:14 pm at 2:14 pm |
  21. Chris from St. Louis

    Tony ... please, be sensible. If you make less than 250K, your taxes, including the capital gain will NOT go up.

    November 5, 2008 02:14 pm at 2:14 pm |
  22. ben

    Mike,

    Reality King clearly said it wasn't due to the economy, but the more taxes he will face.

    Talk about a sore winner, there are still those who are doing well that WILL do worse under Obama because they fall into a bracket that will be TAXED for their success.

    November 5, 2008 02:14 pm at 2:14 pm |
  23. Florida Joe

    RealityKing November 5th, 2008 1:56 pm ET

    My small company of 35 employees put a freeze on hiring today. A direct response to Obama's win costing us more in tax dollars, not due to the current state of the economy…

    I am certainly glad that I do not run my small business based on speculation........Let's give him a chance and see where this goes......to take action now on what you think Obama might do..........Sounds like a "half empty type"

    November 5, 2008 02:15 pm at 2:15 pm |
  24. Arenie

    RealityKing, give me a break. Obama was just elected. He does not yet have the power to change tax policies. He has to propose the bill first, then the senate has to approve it, and then finally the house.

    The economy is in a very bad state. That's more likely the reason for the hiring freeze.

    November 5, 2008 02:15 pm at 2:15 pm |
  25. Gary

    For those who are trying to lay blame (which isn't very constructive in solving the problem by the way) visit the Youtube video of the floor of Congress in 2004 when the Republicans were begging for stiffer oversight committees and were told they were racists for even suggesting such. Even SNL got it right.

    November 5, 2008 02:15 pm at 2:15 pm |
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