Unemployment Figures Remain High

30 July 2012 11:00 - Phoebe Robinson

Unemployment Figures Remain High

It does not look like high unemployment levels are going to go away if the US economy continues to grow as slowly as it did in the last quarter. Lower consumer spending levels held annual growth at 1.5% which is even less than the 2% rate in the first quarter. And a few expect the economy to accelerate in the second half of the year as Europe’s financial problems and a US budget crisis have held back business and consumers.

The US growth estimate from the government suggested that the economy could be at risk of stalling three years after the recession ended.  Economists generally say even 2% annual growth would add only about 90,000 jobs a month. This figure is too few to keep up with population growth and drive down the unemployment rate, which is stuck at 8.2%. The GDP measures from the Commerce Department’s report put the country’s total output of goods and services came in, “The main takeaway from today's report, the specifics aside, is that the U.S. economy is barely growing," said Dan Greenhaus, chief economic strategist at BTIG LLC. "It's no wonder the unemployment rate cannot move lower."

However stocks did in fact rise as investors shrugged off the sluggish US growth and focused on pledges from Europe to preserve the union of 17 countries that use the euro. The Dow Jones industrial average closed up more than 187 points.