This morning on Varney & Co., Stuart asked Lakshman Achuthan of the Economic Cycle Research Institute when we will get out of this range of above 10% to below 9% unemployment.
"I wouldn’t hold my breath for below 9%," said Achuthan. "We've got 7% of the jobs back that we lost. We lost well over 8 million during the recession and that’s why we are so disappointed."
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Stuart went on to ask how many years it would be before we get below 9% unemployment. Achuthan responded, “It remains an open question… whether this slowdown is a soft landing… or if we go into a new recession."
Stuart also asked Achuthan if we are experiencing a jobless recovery. Achuthan said, “It’s jobless in that it hasn’t recovered what was lost. We are having a recovery but it’s just too small because the pain is off the charts.”
The Department of Labor reported this morning that the unemployment rate remained at 9.5% in July while a net 131,000 jobs were lost. Only 71,000 private sector jobs were created last month.