Ball State economist Michael Hicks that today’s federal job report underscores his belief that recovery from the Great Recession will be anemic for the long term.
The U.S. Labor Department reported today that the economy added about 155,000 new jobs in December. The jobless rate remained at 7.8 percent as about 12.2 million Americans continued to be unemployed.
“The current employment summary is just further evidence that the U.S. economy is stuck in neutral,” says Hicks, director of Ball State’s Center for Business and Economic Research (CBER). “Because of congressional inaction, there was no Superstorm Sandy rebound as well as no boost from holiday spending. This is simply another month of growth so slow as to ensure the economy will not recover in this decade.”
He says the economy will suffer from the expiration of a two-year payroll tax “holiday” enacted two years ago.
“The payroll tax increase, which took effect at the beginning of January, and the continued threat of federal spending cuts ought to ensure that we continue to see no improvement in the months to come.”
For more information, contact Hicks at mhicks@bsu.edu or 765-716-3625.
