July 23rd, 2010
05:31 PM ET
4 years ago

White House: Unemployment at 9% until 2012

ALT TEXT Unemployment will likely stay at or above 9% through 2012, White House officials said Friday . (PHOTO CREDIT: Getty Images)

New York (CNNMoney.com) - The White House said Friday it expects that unemployment will stay at or above 9% until 2012, but at the same time forecast that the economy will grow by at least 4% in 2011 and 2012.

It also revised its long-term deficit estimate under President Obama's proposed 2011 budget: The administration now believes the 10-year deficit will be $58 billion less than projected in February when the budget blueprint was first released.

Under the revised estimates, Uncle Sam will ring up $8.474 trillion in deficits between 2011 and 2020, down from the $8.532 trillion estimated in February.

In the near-term, the administration expects the 2010 deficit to come in at $1.47 trillion - slightly lower than originally forecast - while the 2011 and 2012 deficits will come in somewhat higher.

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Filed under: Christina Romer • issues • unemployment • White House
soundoff (34 Responses)
  1. Mike in San Antonio

    Wow...good thing we passed that damn Stimulus package with the massive amounts of pork in it so it wouldn't go above 8%! Whew!

    July 23, 2010 05:33 pm at 5:33 pm |
  2. S Callahan

    Depends who is doing the calculating.....I see higher

    July 23, 2010 05:36 pm at 5:36 pm |
  3. XWngLady

    Unemployment will stay high because businessess have figured out that they can use the employees they have left, to double up on their work output and squeeze every bit of productivity out of them without having to hire anyone else. WAKE UP AMERICA!!! BUSINESSES DO NOT CARE WHETHER YOU HAVE A JOB OR NOT. THEY DON'T CARE WHETHER THEY ARE MAKING A PROFIT OR NOT. IF THEY CAN CREATE A ROBOT TO DO YOUR JOB AND SAVE MONEY THEY WILL. IF THEY CAN PAY SOMEONE A QUARTER IN INDIA TO DO WHAT YOU DO, THEY WILL...THEY ARE IN BUSINESS TO MAKE MONEY, NOT TO CREATE JOBS FOR YOU! They will only add jobs if it is absolutely necessary. and guess what? right now, it isn't!!!!

    July 23, 2010 05:44 pm at 5:44 pm |
  4. jim

    Well whop-tee-doo !!! Isn't this a rosy outlook.They have decided to keep unemployment at over 9% until 2012.This shows just how incompetent this president is To throw he hands up in the air and state that this is as good as it gets for the next year and some months is borderline insanity !!!

    July 23, 2010 05:46 pm at 5:46 pm |
  5. Four and The Door

    Under the revised estimates, Uncle Sam will ring up $8.474 trillion in deficits between 2011 and 2020
    ______________________________________________________
    This is obscene to leave to future generations of Americans. They do not have even a fighting chance to dig out of that level of debt. Americans have enough pride that we will turn this around before that happens. The first thing that needs to be done is to repeal ObamaCare. This is the kind of program that can cripple our economy. We can do better and we will.

    July 23, 2010 05:48 pm at 5:48 pm |
  6. Brian Orlando

    If the Republicans take the House, Senate and Presidency in 2012 the deficit projection will quadruple with..... a war with Iran and North Korea, tax cuts for the rich and more government hand outs to big corporation like Big Oil.

    All of the above of course would be passed without us paying them.... see what happened in the 2000's.

    July 23, 2010 05:51 pm at 5:51 pm |
  7. N Callahan

    This is not good news.

    July 23, 2010 05:51 pm at 5:51 pm |
  8. awaitingliberalizationbyCNN

    Maybe if that stimulus money, TARP and GMC bailout money had been used for projects that really create jobs rather than as a payback to the unions for electing this inept, corrupt, union toady president, we could have lowered it. Unfortunately Obozo and the Congressional clowns wasted trillions of dollars that we did not have on paying back their dope smoking, non working, non taxpaying, Oprah watch supporter and in the process have wrecked the retirements of millions and millions of hard working Americans in the process of call us names, degrading and demeaning us.

    July 23, 2010 05:54 pm at 5:54 pm |
  9. NVa Native

    Whoa ... too many real numbers for the fox followers and teabaggers. How can they twist and distort when you use so many real numbers??
    But really just think where these numbers would be if we had dweedle dee and tweedle dumder in office who said that "everything was fine", and "the economy is basically sound". Or if Obama handn't made the hard (adult) choice to push for a stimulis package.
    And think how better off these numbers would be if the Repubs hadn't gutted the package to be so weak.
    But the Repubs don't want us to recover or our president to succeed on our behalf. They want failure because they think it is good for them politically.
    Repub mantra – "I got mine – screw you".

    July 23, 2010 06:08 pm at 6:08 pm |
  10. Rickster

    Heckuva job, Barry!

    July 23, 2010 06:16 pm at 6:16 pm |
  11. Mr Joshua

    Who would have thought it?

    "Stimulus" Did not work? Shocking...........................

    Why are jobs not being created? Simple. Uncertainty. Uncertainty about the policies of President Obama. Rightfully so. How do we get out of Uncertainty? Republicans take both houses in November. This will lead to confidence in that, Obama will not be able to pass "Comprehensive" Anything. That will do away with uncertainty. In addition Republicans DO have some really good ideas, They are just not getting air time. Mind my words, By this time next year things will be far better. How do I know this? It worked for the Clinton administration.

    July 23, 2010 06:18 pm at 6:18 pm |
  12. susie

    How are we ever going to pay for all the spending that we are doing?

    July 23, 2010 06:22 pm at 6:22 pm |
  13. And You Think the Republicans Can Do Better?

    It's all relative, folks.
    Think about life with John Mccain as President and Palin a heartbeat away. You think America would have been better off? or in the toilet?

    July 23, 2010 06:33 pm at 6:33 pm |
  14. mj

    So ... How is that "Change" thing working for you! Just look at the money Government has spent on signs to advertise what the "stimulus package" is doing for you. Maybe on his vacation this weekend he can come up with some more regulations and restrictions on the private sector. Needs to put a halt to any potential progress of any American business, no matter how small or large. Do away with the Bush Tax cuts. That way no one will hire and those enjoying the "Entitlements" can continue on.

    July 23, 2010 06:34 pm at 6:34 pm |
  15. Len Smith

    Some how you would think by what you read in the comments that this is the President's fault. It didn't necessarily happen on his watch and he has been doing a lot to make it better. Yes, the simulus should have been a lot more, but he did what he could with the help of the party of NO, the party that is looking for this country to hit rock bottom. I don't in my 68 years remember the republicans to be so very anti-American as they have recently.

    July 23, 2010 06:35 pm at 6:35 pm |
  16. Jim

    I thought they said unemployment wouldn't go above 8% if the stimulus passed.

    Oh, well.

    Obama lied, the economy died.

    July 23, 2010 06:35 pm at 6:35 pm |
  17. New Age Independant

    It's fairly obvious that the country has hired the wrong guy for the job. Obama is not willing to do what is necessary to create jobs. He is however very good at campaigning, which I predict he will continue to do until the next presidential election. He should stick with it. It's really the only thing he's good at.

    July 23, 2010 06:42 pm at 6:42 pm |
  18. ib

    Obama has done nothing except to talk down to business people since he took office so what do you expect the people to do except to send jobs to another country. I know all this will be Bush's fault until you know what freezes over.

    July 23, 2010 06:43 pm at 6:43 pm |
  19. Unemployed by Obama

    If only there was something they were willing to do about it...

    July 23, 2010 06:47 pm at 6:47 pm |
  20. Jim in Florida

    "at or above 9%" jesus, who are they kidding, the real numbers are much higher

    seems to me the stimulus didn't work at all – just created more government jobs – no help for the private sector

    then again Obama's goal is to weaken and kill the private sector, leave everything in the government's hands. that is why the Obama directed Congress extended the opium of unemployment benefits – expect them to spend us into a deep hole on that through the november elections then they will withold the drug for christmas.

    July 23, 2010 06:48 pm at 6:48 pm |
  21. Adam

    Ever think that market capitalism without regulation allows greed to cause such economic hard times? The free-market system is good but it's not immune to perversion from greed and manipulation. Political administrations do not control the economy; the economy controls the economy. It's become a monster and people expect an administration to waive a magic wand and make it right? Dream on. Profit is good but greed is a curse.

    July 23, 2010 06:49 pm at 6:49 pm |
  22. JDD

    The tragedy of recent History is that this Administration has not made job creation its first, second, or even third priority. There is clearly a priority being placed on shoring up the market economy – in other words, the investment vehicles that the rich do not want to see disintegrate.

    I believe it has been stunning – absolutely stunning – to see the direct effect this Administration's policies have brought to the small – and large – business sectors. They have ground to a hiring halt. And yes, the healthcare overhaul had a lot to do with it. I believe that history will record that legislative priority as one of the worst decisions ever made in time of crisis. How different our last two years could have been. How much funding could have been funneled into the private sectors in order to encourage small businesses and start-ups to hire, and, provide health insurance which is instead being simply given to individuals. What a wasted opportunity. To provide opportunity for all to provide for themself, rather than only give them the provisions. What a misguided diminishing of human dignity.

    July 23, 2010 06:51 pm at 6:51 pm |
  23. Dennis

    Sure glad the stimulus is working. I guess higher unemp;loyment keeps more people dependent on the government. Just what the D's want.

    July 23, 2010 06:52 pm at 6:52 pm |
  24. jay

    If the GOP Corperate greed machine was in charge with their job outsourcing, unemployment would be at twenty-five percent.

    July 23, 2010 06:54 pm at 6:54 pm |
  25. Willy Brown

    There's a shocker NOT!

    July 23, 2010 07:01 pm at 7:01 pm |
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