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Thursday, August 27, 2009

Unemployment To Jump Over 10 Percent

Despite promises that the $787 billion stimulus package would help to keep unemployment below 8 percent, new projections say it will rise to over 10 percent.

Just 10 days before taking office, Obama's top economic advisers released a report predicting unemployment would remain at 8 percent or below through this year if an economic stimulus plan won congressional approval.

H/T Hennessey, for leading us to the Congressional Budget Office's summer update.

Not only is the estimate for the deficit been raised to $9 trillion, but the unemployment rate will be raised to 10.2 percent.

Page 14, of the Budget and Economic Outlook update, 92 page PDF file here, says:

In CBO’s forecast, the unemployment rate continues to rise, climbing from 9.3 percent this year to an average of 10.2 percent next year (peaking at 10.4 percent around the middle of the year), and then falls to 9.1 percent in 2011.

'Nuff said.