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. Obama Ruins the World

    USA just went to the far socialist left. In his acceptance speech, did you see all the lemming liberals with glazed over eyes when Obama talked about traditional American themes like duty, sacrifice, and working hard? Does anyone actually think Obama the New Black Messiah will keep his campaign promises that he sold all of you druids on? If he broke his promise about campaign financing, what in his past or in his character is there to prove he'll do otherwise with other major issues? How can you believe what he says he'll do when his record proves he failed to vote so many times on so many issues, and is beholden to his corrupt Chicago cronies? Why do you think he has just drop shipped Rahm Emmanuel in as Chief of Staff? You liberal druids will get exactly what you deserve: a new world order president who will destroy American values, decrease our security with a weakened military, and soak the rich and kill productivity and capitalism. This is the beginning of a dark, dark era, not just in skin color.

    November 5, 2008 02:15 pm at 2:15 pm |
  2. LS, Austin, Texas

    Goodness, people need to get a grip.

    Bush has done more damage to this country than ever before in history. You people are just looking for any excuse. Gosh, I guess McCain and Palin's message of fear will be hanging onto you for a while.

    Thank goodness McCain didn't get elected, he would have definately finished the mess Bush started. And thank goodness I never paid attention to them, because once I heard the bashing and the negitive messages, I knew that their followers would fall victim to McCain and Palin's dark and hopeless images.

    At least we now have a 'smart and intelligent' person making critical decisions that will shape-up things in this country.

    November 5, 2008 02:15 pm at 2:15 pm |
  3. Glenn

    Then, "RealityKing", you must be a poor business man. If your company is neting more that 250K, why would you stop hiring if you actually need the employees? Even with a tax increase, you are still making a significant profit for a samll business.

    November 5, 2008 02:15 pm at 2:15 pm |
  4. Ret. Iraq Vet

    Tony in NC ,
    President elect Obama already said he's not raising the capital gains tax. How about you post a source for that article. Any Money editor who would tell you to sell your "money making" stocks to keep from paying taxes is worth reading. If you make money on your stock and pay the 35% tax on the gains you still make money. That which you wrote defies logic. More the sky is falling from Republicans.

    November 5, 2008 02:15 pm at 2:15 pm |
  5. Ms. Jenny

    "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…"
    --------–

    No, that's a "direct response" to your own ignorance and overreaction. Maybe you should talk to your accountant before making knee-jerk decisions based on something that hasn't even happened yet (namely, tax adjustments). Not to mention, if you're concern is new hires, then you also need to consider the tax credit that you will receive under Obama's plan for each new job you create.

    November 5, 2008 02:16 pm at 2:16 pm |
  6. TJ

    This mess is all the Republican's fault. Having said that, this is not necessarily time for us to point fingers. That will come later. For now, we need to be about the business of creating jobs and fighting our way out of this financial crisis. It is time for people of all parties, Democrat, Republican, Green and Independent, to work together to make this country great and prosperous once more. People, America is hurting. Only we can heal her wounds. Bickering and finger-pointing, though tempting, is not what the country needs right now. It needs all of us, working together towards a common goal.

    November 5, 2008 02:16 pm at 2:16 pm |
  7. bruce

    job losses are not Obama's fault it is the failed policy of Bush, but it is time for us all to come together and to work as a nation.
    We all need to get over the partisanship that has divided this country.
    just like another president that came from ill...we need a uniter..and someoen to lead us in these dark times.
    It is incumbant on all of us to work together...only then can we overcome the bad things that are happening and will happen in time as this all works itself out. it is not up to whomever is President to make this happen it is up to us, the citizens to take reponsiblitly and work together.

    November 5, 2008 02:16 pm at 2:16 pm |
  8. New Independent Voter

    In your situation people can only blame the owners and not Barak Obama. The owners are the one who has put on the hiring freeze, without giving the President-elect so much as a chance. There is a reason Barak Obama won the election. Personally, I did vote for him but it was only after reviewing his policies and plans and deciding that he someone America desperately needs. Don't cut off your nose to spite your face.

    November 5, 2008 02:17 pm at 2:17 pm |
  9. AL

    To al the right wing – Obama haters go blog on Fox where someone actually cares and will be interested in what you have to say. By the way where was your friend Sean Hannity last night? I can't believe such an important day and he missed it. Oh I know, he would have to tell the whole world that his big mouth did nothing to help John and Sarah.

    A great day for America – Congratulations Obama & Biden

    November 5, 2008 02:17 pm at 2:17 pm |
  10. Patty L

    Well people you fooled me I honestly did'nt think there were that many blind and gullible people in the world, the blacks being the worst they only voted him in to make history, so in 20 years from now I hope your proud to tell your children and grandchildren that you helped created the biggest mistake ever in America. Now that will be what is remembered about Obama and will go down in history.

    November 5, 2008 02:17 pm at 2:17 pm |
  11. David Lampo

    PDX: this "mess" you mentioned didn't start a couple of months ago. It started years ago when those in Congress, mostly Democrats, refused to tighten regulations on Fannie and Freddie, leading to the collapse of the mortgage and credit markets. it doesn't have anything to do with Bush; in fact, he tried to reform them beginning in 2003 and the Democrats fought him tooth and nail. Mr. Obama took $123,000 in Fannie and Freddie lobbyist money and did nothing to reform them. The man is a serial liar.

    When you don't even know the cause of the crisis and whose fault it really is, please don't write stupid comments on this blog. You just look ignorant.

    November 5, 2008 02:17 pm at 2:17 pm |
  12. Dan Lorenzo

    I am REALLY trying to NOT buy into the right wing hysteria. It does scare me that my lazy musician friends who live with their mommies have NEVER seemed so happy. I am REALLY hoping that people who work hard will not be punished. You should be ashamed of yourself if you hope Obama fails. You must admit that it IS kind of cool, now that we've elected our first bi-racial president, it opens the door to the possibility of America someday in the future electing it's first black president. Don't openly (or secretly) hope for him to fail. It's been a long boring process, it's nice that we can FINALLY move on to something else.

    November 5, 2008 02:18 pm at 2:18 pm |
  13. Josh in MD

    Lee – It isn't just the black population that sees the opposite of your views. It is the Latino voter, the female vote, the Jewish voter and me, a white male voter. This country is no longer defined by our history but rather by our future and as a 31 year old male with a wife, a mortgage and two young children, I could not be happier.

    November 5, 2008 02:18 pm at 2:18 pm |
  14. Ms. Jenny

    "We now have an inexperianced 1/2 White, 1/2 Black man in the most important role of our nation.
    ...
    Its not the color of his skin that I am upset with, but his lack of experiance.

    Then why did you bring it up in your first sentence? Moron....

    November 5, 2008 02:18 pm at 2:18 pm |
  15. Andre Barnett

    I own a small company. I am not going to stop hiring. With the cuts and exemptions coming under the Obama presidency we will be fine. If we can get past the arguing over what we speculate will happen we can actually help to turn this economy around. The first step is getting the housing market back on track. Prices of homes had been inflated over the past few years. We need to bring them back into perspective and renegotiate with owners a new mortgage and interest rate. Once this is in process we can move forward in the energy sector finding new energy sources and exploiting those already at our disposal. The job markets will stabilize if and when we take the scare tactics out of the picture.

    -Andre

    November 5, 2008 02:18 pm at 2:18 pm |
  16. RJ, Phoenix

    Mike... guess you need learn to read.
    RealityKing clearly stated this decision was NOT a result of the current economy.

    November 5, 2008 02:18 pm at 2:18 pm |
  17. Becky

    My job at a major bank was eliminated last week. If I had not been for Obama before, I would have been on election day!.

    November 5, 2008 02:19 pm at 2:19 pm |
  18. Andre Barnett

    Have any of you stopped to think how you are affecting anything? You are not. I am an Obama supporter, but I was first leaning to the conservative side. Obama is not a Marxist nor is he going to try to place all the white people in bondage. Obscurely racist views are such a pull to the past. If that is where you are living, know this, you will fade as does time. Give heed to a new dawning. Let you minds be enlightened and so will your lives be enriched. Obama is seen as a Messiah, and far from it is he. He is but an agent of change, change that we need to at least start. Obama is not just a Black man he is also White. He can not hate one race without finding fault within himself. So is it for you. If you can say he is less of a man or American because he is Black, remember he is also White. Do not make yourselves out to be fools bickering back and forth. It is a waste of time. We should be working together to get something done. If you would use your energy to be a force in the productive workings of this nation, and not the tearing down, we would already be in a much better place. If we keep this meaningless divide we will never be the best this nation can be.

    Everyone be blessed,
    may God watch over and
    lead this country into a better day.

    -Andre B.

    November 5, 2008 02:19 pm at 2:19 pm |
  19. Ghost

    It will be a hard time since the repubs hold enough of the senate to continue doing filibusters like they have done the last 2 years. I think we will be lucky if President-elect Obama can get half of what he wants done.

    November 5, 2008 02:20 pm at 2:20 pm |
  20. Jenni

    That seems a bit premature to put a hiring freeze on a small company because of who was elected last night. Obama hasn't changed any taxes in one day. Maybe there is another reason for the feeze, like Bush and the crap he turned the economy into.

    November 5, 2008 02:20 pm at 2:20 pm |
  21. LD NJ

    Well...you get what you ask for. This election painted the scenario of the economic downturn being solely the result of a Republican administration. While the Repubs are no gems, it seems the Obama Changelings have failed to grasp (or chosen to ignore) the extent to which the Democrats were in on this mess. I guess controlling both the senate and house as well as heading the key committees that oversee banking and finance is irrelevant as are sweetheart Countrywide loans and support fot Fannie and Freddie.

    It would seem that at some point during his two year hiatus from the senate, Mr. Obama may have taken the opportunity to address these issues that everyone claims to have foreseen. Now we'll finally get the chance to see what he's made of (unless there's yet a better job calling than president which will have him again abandon his elected post)

    November 5, 2008 02:20 pm at 2:20 pm |
  22. David

    He will struggle with a lot of things on his agenda that the people will not go for. He should know where he can go with his carbon tax.

    November 5, 2008 02:20 pm at 2:20 pm |
  23. Smallbusiness

    I had a hiring freeze put in place last week for my company. It was right about the time that I realized that McCain wasn't going to win. I'm hoping he doen't tax us too much. I don't want to lay anybody off!

    November 5, 2008 02:20 pm at 2:20 pm |
  24. RealityKingisRIGHT

    RealityKing: what your detractors on this message board FAIL to comprehend, is that SMALL BUSINESS generates the majority of jobs in this country!!! I sware, the idiots are out in force this year, from electing Obama bin Biden to acting stupid on this chat board.

    November 5, 2008 02:21 pm at 2:21 pm |
  25. Cynthia; Bham

    I will say this, if it can be done President Elect Obama will do it. I don't want to get put in moderation , but I will say it anyway to the negative people who are posting – give President Elect Obama a chance, President Bush was given 8 years and the other before him were given a chance.

    November 5, 2008 02:21 pm at 2:21 pm |
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