Five More Years of Elevated Unemployment

For December, economists expected an increase of 150,000 jobs; however, a report released earlier today indicated a gain of only 103,000. Despite this, the unemployment rate is down to 9.4% from the previous mark of 9.8%. Ben Bernanke, Federal Reserve Chairman, is encouraged due to an expectation that consumers and businesses alike will increase their spending during 2011. This optimism is in spite of the disappointing job increase. Despite an increase in Bernanke's optimism in regards to the unemployment rate, the Federal Reserve Chairman firmly believes it will remain elevated for approximately five more years.