As Job Growth Slows, the Economic Recovers Stalls [AUDIO]
The economic recovery was supposed to be revving up by now, but recent job data suggests the economy has actually been slowing down in recent months.
So what’s going on here?
“A major part of the problem is the continuing uncertainty in Washington, as both sides of the isle continue bickering and pointing fingers as they all posture for the political moment, rather than work on policies that would get the American economy back on track,” said the Director of Economic Research at Cohn Reznick, Pat O’Keefe.
He points out that private sector job creation has been sagging since the beginning of the year, and there’s not much in the outlook that suggests an acceleration in hiring anytime soon.
O’Keefe explained what federal lawmakers have done is set a series of deadlines for the budget, spending and the debt ceiling that will spell out whether or not they’ve been able to reach an agreement.
“What it means is by mid-December, in the middle of the holiday shopping season, the businesses and households of America may be bracing for yet another shutdown, and for yet another political brawl in Washington. In which case they’ll reduce their holiday spending, they’ll set aside money, the employers will hold off hiring because they can’t be certain of what the picture is going to look like,” O’Keefe said.
As a consequence, he has a prediction.
“This slow growth we’ve been experiencing for the past six months will probably slow even further. We don’t see the kind of energy and the kind of increased spending by companies and households because they’re uncertain about the future.”