News from 1600 Pennsylvania ave is that we should expect to see 95,000 new jobs each month while personal savings remain high.  The White House report lauded and applauded the stimulus package that was put together and gave it as part of the reason we are going to see the increase in jobs.

The explanation for the savings is that Americans are now saving up to buy larger ticket items as opposed to buying on credit.  Credit has been harder to come by for many and the general uneasy feelings about the economy and future employment has kept many from taking on new debt.

Good News?

Yes and no. Of course it would be beneficial for many to not incur new debt but holding off buying new big ticket items is hurting the manufacturing sectors which, in turn, affects new jobs. Crazy but the two are tied together like a ship is moored to a dock.

Although 95,000 new jobs per month sounds like a lot, and it is, we will still be mired in 10% unemployment numbers for some time and at that rate the unemployment numbers will not come down to 6% until 2015. That’s a five year wait and the projections can be altered big time during that five years.

With Americans saving at rates of 4 – 7%, the recovery from the recession is going to take some time and in all reality, a full economic recovery is unlikely until and unless the financial system is repaired.

This entry was posted on Thursday, February 11th, 2010 at 7:59 am and is filed under Employment News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.