Bloomberg News

Fed’s Pianalto Says Long-Term Jobless ‘Particularly Troubling’

November 02, 2011

Oct. 20 (Bloomberg) -- Federal Reserve Bank of Cleveland President Sandra Pianalto said that long-term unemployment is “particularly troubling” for the economy, and a lack of demand is causing high jobless rates.

“A particularly troubling aspect of our current unemployment problem is the long duration of unemployment experienced by many individuals,” Pianalto said today in Toledo, Ohio. “The most important reason for our high unemployment rates is that spending by consumers, businesses, and government still remains uninspiring. In other words, these higher rates of unemployment are predominantly cyclical in nature.”

She said she foresees a 3 percent growth rate in the third quarter, and her outlook for 2012 is for about 2.5 percent expansion.

--Editors: Kevin Costelloe

To contact the reporters on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net; Mark Niquette in Columbus, Ohio, at mniquette@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net


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