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TEXT OF STORY
Bill Radke: However you cut it, unemployment is high, and this week Fed Chairman Ben Bernanke said it’s not coming down anytime soon. A lot of people say when recovery comes it will be a jobless recovery. Marketplace’s Amy Scott tells us what that’s supposed to mean..
Amy Scott: Since the recession began, 6.5 million jobs have vanished. The unemployment rate stands at 9.5 percent, and many economists predict it will stay high long after other parts of the economy start to improve.
Hugh Johnson: It’s going to be a tough employment situation. A jobless recovery is probably the way to describe what lies ahead.
That’s economist Hugh Johnson with Johnson Illington Advisors. He says many companies have cut expenses to the point where they’re profitable again. That doesn’t mean they’re ready to start hiring.
Johnson: There’s gonna be a reluctance when the economy is improving to hire back those workers, cause obviously that’s gonna cut into profits.
Some worry the reluctance to hire could even drag the economy from recovery back into recession. Consumer spending drives the U.S. economy. Johnson says as long as people aren’t working, they won’t spend.
In New York, I’m Amy Scott for Marketplace.
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