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Sluggish Growth Could Signal Hiring Stalled

Politico (04/27/12) Josh Boak

The current economic growth rate of 2.2% is a steep decline from the 3% growth rate seen at the end of last year and is an indication that the current pace of hiring likely won’t be sustained through the fall. As a result, the current 8.2% unemployment rate is unlikely to fall much further. The economy is “expanding at a rate that is too slow to put reliable, significant downward pressure on joblessness,” says Economic Policy Institute economist Josh Bivens. However, White House Council of Economic Advisers chairman Alan Krueger notes that residential construction and automobile production are surging.