Arab Today, arab today obama faces new challenge to his economic agenda
Last Updated : GMT 22:32:46
Arab Today, arab today
Arab Today, arab today

Following dismal statistics on job creation

Obama faces new challenge to his economic agenda

Arab Today, arab today

Arab Today, arab today Obama faces new challenge to his economic agenda

Barack Obama has warned of "bumps on the road" to complete economic recovery
Washington - AFP

Barack Obama has warned of \"bumps on the road\" to complete economic recovery President Barack Obama faced a new challenge to his economic agenda after dismal statistics on job creation and an uptick in the unemployment rate sent US stocks plunging. The economy added a paltry 54,000 new jobs last month, one quarter of the February-April pace, while the unemployment rate edged up to 9.1 percent, figures from the Labor Department showed Friday.
While the White House and economists cautioned that the poor data were likely a monthly blip, they fueled allegations that Obama\'s economic policies are failing, 18 months ahead of the next presidential election.
With employment figures for the previous two months revised downward, the report confirmed that economic growth has been stagnant since the beginning of 2011, despite government efforts to power up a job-creating recovery.
The private sector, expected to drive the economy as state and local governments slash spending, added a measly 83,000 positions, one-third the rate of the previous three months.
The mining sector added 7,000 new jobs -- driven by jumps in oil and mineral prices -- but the larger manufacturing sector, which had expanded solidly in the first part of the year, lost 5,000.
Meanwhile, the public sector at all levels cut 29,000 jobs.
\"There is very little positive news in this report,\" said Dean Baker of the Center for Economic and Policy Research. \"There are more signs suggesting slower growth than any acceleration.\"

Speaking at an Ohio auto plant rescued by his government, Obama did not directly cite the new data, but said \"rough terrain\" still lay ahead.
\"We have still got a long way to go, not just in this industry, but in our economy,\" he told workers at the Chrysler Jeep factory.
His top economic adviser, Austan Goolsbee, admitted the numbers were bad.
\"While the private sector has added more than 2.1 million jobs over the past 15 months, the unemployment rate is unacceptably high and faster growth is needed to replace the jobs lost in the downturn,\" Goolsbee said.
An estimated nine million jobs were lost during the crisis.
But Goolsbee cautioned \"it is important not to read too much into any one monthly report.\"
Still, nearly 14 million people remain unemployed more than a year after the country\'s deep recession ended; 6.2 million people have been jobless for more than six months.
At 9.1 percent, the unemployment rate in May was lower than the 9.6 percent of a year earlier, but virtually unchanged since the beginning of 2011.
The data showed an average of 157,000 jobs were created each month in the first five months of 2011, far less than the 200,000 economists say is needed to reduce unemployment.
The data led some economists to lower their once three percent-plus forecasts for GDP growth in the second quarter to as low as 2.0 percent, barely different from the sluggish first quarter.

Ian Shepherdson of High Frequency Economics said the impact of Japan\'s March 11 earthquake-typhoon disaster on US manufacturers -- particularly car makers -- as well as a jump in oil prices were partly to blame.
\"Overall, this is horrible,\" he said. \"But we think it is largely a reaction -- an overreaction we would say -- to the rise in oil prices, and a very real hit to autos and tech from the Japan earthquake.\"
Republican leader Eric Cantor leaped on the news as evidence of misguided White House policies.
\"It is astounding that despite the warning signs and economic indicators, President Obama and congressional Democrats still have failed to offer any concrete plan to create jobs, reduce our debt, or grow our economy,\" he said in a rapidly released statement.
And Republican Mitt Romney, who jumped into the 2012 presidential race Thursday by challenging Obama\'s economic record, tweeted that \"today\'s unemployment numbers show that we are going backwards, and that is the wrong direction for America.\"
The data were likely to feed into the contentious debate between the White House and Republicans over measures that would slash public spending further.
The White House argues that the cuts Republicans are demanding would exacerbate unemployment, with spending cuts and layoffs at the federal, state and local levels likely to eat into gains from private sector hiring.
Briefing.com economist Jeffrey Rosen, who cut his forecast for the second quarter to a stagnation pace of 1.4 percent, warned of tougher months ahead, whatever the case, because consumer spending will remain depressed.
There is \"a strong possibility\" that payroll gains will remain below 100,000 for the next month or two, he said.
\"This does not bode well for future income and spending,\" he said.
If there is no striking recovery, \"our consumption forecast for the next few quarters will have to be revised lower to compensate for the lower income growth levels,\" keeping a damper on the overall economy, Rosen said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today obama faces new challenge to his economic agenda Arab Today, arab today obama faces new challenge to his economic agenda

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium

GMT 08:23 2017 Tuesday ,14 February

Toshiba dives on shock loss-reporting delay

GMT 08:18 2017 Tuesday ,14 February

Banker-financier Mnuchin sworn in as US Treasury chief
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday