Why the Economy’s Growth Isn’t Easing Unemployment
(AP) — An economy growing 2 percent a year might be tolerable in normal times. Today, it’s a near-disaster. A growth rate of 5 percent or higher is needed to put a major dent in the nation’s 9.6 percent unemployment rate. Two reasons why that’s unlikely well into next year and maybe beyond: — Construction — both residential and commercial — collapsed last year. And it isn’t expected to regain its strength for years. Typically after recessions end, construction booms and powers a new economic expansion.
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