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. Shannon, CO

    The Republicans are not entirely to blame for the messed up economy. You can also blame the creators of Fannie Mae and Freddy Mac (Obama was on the Board for those and received the second highest amount of money) during the Clinton Administration(D) and don't forget the fact that the democrats took over two years ago. This economy has been coming for a long time and it's not just the Republicans fault.

    November 5, 2008 02:34 pm at 2:34 pm |
  2. Brandon

    No one has any idea what really is in store for us. Obama made the best case for change and unity. If you can't give him the chance he has earned please move to Canada or Europe where the politics are more conservative. You told those voting for Kerry in 2004 to do the same even when we correctionly envisioned the fails of the Bush Administration.

    November 5, 2008 02:34 pm at 2:34 pm |
  3. Dan From NY

    Heres how you can create jobs Mr.Obama:

    STOP sending jobs to INDIA!!! I am in the IT field and as an american it really upsets me looking at the shape of the IT industry.

    I do contract work and recently (TWICE) I was let go and replaced by an indian consultant who was brought in on work visa. This is getting ridiculous! We should STOP corporations from making deals with Indian Consulting companies! We've had it!

    Think about it! Thousands and thousands of OUR jobs are being given to Indian Consultants to save money!!

    Offshore and on-shore jobs given out to NON-US Citizens/Perm Residents should be completely STOPPED!!

    November 5, 2008 02:34 pm at 2:34 pm |
  4. Phil in KC

    It will not be easy and it will not come overnight. I hope people don't expect that, simply because someone new occupies the White House, this will magically change.
    Success in the short term needs to be gauged based on the policies he is able to put in place and the legislation he is able to get through Congress.

    November 5, 2008 02:34 pm at 2:34 pm |
  5. Experience

    Many of you talk about the lack of experience that Obama has and I would like to know how expericence has helped us in the las 8 years?

    Those of you who keep bringing up the experience issue act as if the President of our country would make decisions without any consultation. The President will govern with a team of very qualified people that will decide on issues from national security to the economy.

    November 5, 2008 02:34 pm at 2:34 pm |
  6. KLEE

    patty L – - racist comments like yours are so "yesterday" get with the program and open your eyes – people are people – if you can't join the human race – just go drop out and be quiet.

    November 5, 2008 02:34 pm at 2:34 pm |
  7. Becky

    Tre' – I have advice for you in your hard times: Go back to school. Learn proper English. Speak like an adult and get a better paying job. The Government Republican or Democrat, does not owe you a thing. Be responsible for yourself and your family. And fyi: just because someone owns a business doesn't mean they are wealthy enough to take care of deadbeats.

    November 5, 2008 02:34 pm at 2:34 pm |
  8. Greed is not good

    Say good-bye to the GOP trickle down no regulation corruption...Obama has a plan and the vision to get it done

    November 5, 2008 02:35 pm at 2:35 pm |
  9. JP

    "Obama will struggle to create jobs"

    Yeah, if you raise taxes on the very people who create the new jobs, I'd say you're likely to have a struggle on your hands, trying to create jobs out of the thin air.

    November 5, 2008 02:35 pm at 2:35 pm |
  10. Stephanie

    No one said that getting this country back on track will be easy. We have very serious problems to tackle. We need to work together, and expect our government to work together, to find solutions that are fair and that work. Stop the silly comments...the election is over already. Get on with creating the future you want for your children.

    November 5, 2008 02:35 pm at 2:35 pm |
  11. Dan

    All these nay sayers are pathetic. If you think Barack Obama is a socialist, you are way off! He is the change this country has needed for 8 years! George W Bush crippled this country into economic ruin and a needless war. Just look at the military votes that came in overseas. They were strongly in favor of Obama! They want change too and McCain would not deliver. Congrats Obama and lead this country into a bright future.

    November 5, 2008 02:35 pm at 2:35 pm |
  12. ben

    obama is in a win-win situation, if things get worse, he can blame it on bush, if things get better, it was of course because hes sooooo gooddddd.

    basically, he has a free first 4 years where whatever happens he's gonna have he'll these delusional voters believing his every word, just like what got him elected

    November 5, 2008 02:35 pm at 2:35 pm |
  13. worriedmom

    Even though I didn't vote for him, He is now my President and I would like nothing more than to say I was wrong about him. Only time will tell what his agenda is for us and Let's pray it is for the good of the USA.
    I think that McCain did a wonderful concession speech and I also think Sarah Palin did a great job and hope to see more of her. For all you Obama people out there who puts down Sarah Palin why don't you follow your Leaders comments and unite instead of still trying to divide. You won, why still be so hateful.

    November 5, 2008 02:36 pm at 2:36 pm |
  14. Hopeful for Tomorrow

    @John - the reason we're making excuses for Obama is because he hasn't even started the job yet! He can't be blamed for Bush's faults just because he's going to be next in line.

    November 5, 2008 02:36 pm at 2:36 pm |
  15. AK

    Dana thank you.
    You and other "white Americans" made this happen for all Americans
    We black alone could have dont it.
    America is a great place it time to come together and rebuild our world again.

    A black in America

    November 5, 2008 02:36 pm at 2:36 pm |
  16. Ron Towns

    What an amazing day in American history! Dreams do come true! Did you all see how Oprah Winfrey revealed this week that she uses a vision board to visualize her goals and harness the power of intention? Oprah created a vision board, months ago, that emphasized Obama as president and the gown she intended to wear during his imagined inauguration.

    For anybody who doesn’t know, a vision board is collage of image that symbolizes a desired outcome. By looking at these images daily and imagining these desired outcomes – like accomplishing a goal – your brain becomes more honed in to making this reality. Many top athletes, entrepreneurs, presidents, and philanthropists have used vision boards to help them accomplish their goals.

    I know that on TheVisionBoardKit.com you can download a free chapter that includes the eight basic ingredients of a successful vision board.

    November 5, 2008 02:36 pm at 2:36 pm |
  17. Jason NE

    Listen People this country is in the middle of another supply side economics melt down. This has happened before and will again as long as we keep electing people who expect wealth that is spread to the top of the economic chain is going to turn around and boost the economy.

    It happened with reagan and it happed with bush. I don't know if people were listening but small business who create jobs and employ a certain number of people will recieve a tax credit under Obama. And their workers and owners making under 250,000 will see no new taxes or a tax break. Also Capital Gains is an area that recieved a huge break under bush in the name of trickle down economics. Has it worked?

    Now this is reality. I don't know what some peoples reality is but they certainly don't list any real details when blamming a person who not even been in office 24 hours. Plus non of these victims of Obama can list how it would have been better if McCain had been elected.

    Garbage.

    November 5, 2008 02:36 pm at 2:36 pm |
  18. D. Williams

    John, you don't think a 2nd term was giving Bush the benefit of the doubt? Look where that got us.. all everyone is saying is give Obama a chance.. why are you and people like you 100% sure he will fail to make things better?

    November 5, 2008 02:37 pm at 2:37 pm |
  19. NetteNAZ

    Any job losses occurring today/tomorrow or this QTR have nothing to the do with outcome of the election. Those positions were already slated to be eliminated. Also, you have too remember that the current recession and job elimnation were all apart of the Republicans and Bush terms. I know Dems have been in control of Congress for 2 years, what's that compared to the first 6 which created this mess we're in.

    Keep in mind, he did not say it would be easy, however, bashing ihim or being negative to him when he has taken the oath to be in office yet is a fruitless position. Now's the time to stop placing blame and disengaging and support our new President Elect Barack Obama.

    November 5, 2008 02:37 pm at 2:37 pm |
  20. David

    Quit with the all of the hate.

    American is about freedom and democracy and everyone who allows such garbage comes out of their mouths are a poor example of that freedom and democracy that you all seem to take for granted. Millions of people around the world do not have the rights or freedoms we enjoy.

    Obama will do everything in his power to create a good climate for job creation. He asked that we the people also step up to the plate and go on this journey with him. He wants to end all that divides this nation and bring all her people together as the United States of America.

    Disagree if you must but ask yourself if all of your negativity does anything to help this country move forward and dig out the mess we find ourselves in.

    Does your hate, racism, and bigotry do anything positive for this country? No, not a thing. Such nonsense is a part of the past and that is where you should leave it.

    November 5, 2008 02:37 pm at 2:37 pm |
  21. KLEE

    John – Bush had 8 years to get things right! I ain't sayin' he's a bad man – but he didn't do the country any favors either – maybe he wasn't the best qualified??? His time is up regardless – his popularity is way down (25%?) that doesn't cover just us Democrats and Independants does it.

    November 5, 2008 02:37 pm at 2:37 pm |
  22. aware

    American money and media buy a president, and Russia presents the stealth president elect with his first test! :(

    Hillary blew her best chance!

    Palin 2012 0r 2016! She is an authentic reformer and will be well prepared to be POTUS in either 4 or 8 years! :)

    November 5, 2008 02:37 pm at 2:37 pm |
  23. Corey-Ohio

    I think we have to realize that it is not time to sit back and watch what Obama does but to stand up and work also, reach out to those you may not agree with you and find compromise, volunteer, enlist, invent, create, and most importantly sacrifice...by that i mean give more of ourselves to eachother and our children...like our parents and grandparents before us. This is the nation that rebuilt from depression and triumphed over war and hate. It is our time to rise to that call..Obama and McCain's call.

    November 5, 2008 02:37 pm at 2:37 pm |
  24. George S

    Are we really so out of touch, as a country, that we believe that the government is either the cause of or solution to all our problems? Do we really believe that a new inexperienced man can do the impossible when an experienced man could not? Changing drivers does not make a bumpy road any more smooth. I'm glad that Mr. Obama's supporters are all so very happy. It will be interesting to see how long they stay that way.

    November 5, 2008 02:38 pm at 2:38 pm |
  25. Richard

    oh here we go... making excuses for Obamas failure before he even starts..he is not nor will ever be my president...and that goes for about 30% to 40% of the country...

    November 5, 2008 02:38 pm at 2:38 pm |
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