From a report of the Congressional Budget Office: CBO Reports Record Deficits For 2011 Along With Slow Job Growth
The report will likely accelerate calls by Congress to reduce spending for the remainder of fiscal 2011, which began on November 1. The House Majority, in the coming weeks, will consider a cut of at least $55 to $60 billion from fiscal 2011, bringing non-discretionary spending in line with fiscal 2008 levels. While certain spending cuts are a wise conservation of resources (cut military spending, get out of foreign wars, stop extravagant support of nations like Israel, cut back Homeland Security to reduce the overwrought sense of fear imposed on most Americans), spending on support like unemployment insurance as a bridge, and job retraining, are a wise investment. We have need new competitiveness, and these sorts of initiatives will only make us stronger. Of course, we could just send the unemployed off to foreign lands — and reduce the surplus population.
Deficit: The Congressional Budget Office (CBO) projected the deficit for fiscal year 2011, will be almost $1.5 trillion, or 9.8 percent of the gross domestic product, up from $1.29 trillion in 2010.Employment Outlook:
Jobs Recovery Slower than Past Recessions: CBO said the recovery in jobs has been much slower in this recession than after past recessions and it predicted economic growth will remain “below potential” for several more years.
Hiring Slowed by Changes in the Economy: CBO said payroll employment, which plunged by 7.3 million during the recent recession, rose by only 70,000 jobs, on net, between June 2009 and December 2010. “The recovery in employment has been slowed not only by the slow growth in output, but also by structural changes in the labor market, such as a mismatch between the requirements of available jobs and the skills of job seekers,” the report said.
Employment Will Not Recover Until 2016: CBO expects the economy to add about 2.5 million jobs a year from 2011 to 2016. However, it cautioned, “Even with significant increases in the number of jobs, a substantial reduction in the unemployment rate will take some time.” The unemployment rate should fall to 9.2 percent by the end of 2011, 8.2 percent by the end of 2012, and 7.4 percent by the end of 2013 – reaching 5.3 percent only in 2016, according to CBO’s forecast.
Other reports worth noting from the Congressional Research Service: