Economists: Unemployment to remain largely unchanged through end of year
Monday, July 30, 2012 Financial
According to economic experts, slow job growth means that the U.S. unemployment rate is likely to hover around 8 percent until the end of the year.
MarketWatch reports that preliminary reports of second-quarter gross domestic product growth dropped to 1.5 percent from 2 percent in the previous quarter. The figures were significantly lower than the fourth quarter of 2011, when GDP grew by 4.1 percent. Economists surveyed by the source revealed that net hiring rose by 111,000 last month, revealing that many industries continue to struggle in the recovery.
In an interview with the source, IHS Global Insight U.S. chief economist Nigel Gault said that the growth would be slow at best.
"There’s nothing you can see that will reignite growth," said Gault. "We are in a position of looking for things that can keep the economy going at a modest pace."
One sector that has been adding jobs at a quick pace is the construction industry. According to figures from the Bureau of Labor Statistics, there were 111,000 jobs added in the industry last month.
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