US Federal Reserve Chairman Ben Bernanke
The US Federal Reserve chairman warns that Americans may not get rid of high unemployment rate soon, as the country grapples with the worst recession since the Great Depression.
Speaking during a meeting attended by several business executives at the Ohio State University on Tuesday, US Federal Reserve Chairman Ben Bernanke voiced his deep concerns over the slow pace of the economic recovery in the United States, saying that "We're not growing fast enough to materially reduce the unemployment rate," AP reported.
Bernanke said the economy needs growth of 2 percent to 2.5 percent in order to inject life into the dried-up job markets.
As the US economy tumbles in the face of a big recession and growing jobless rates, he acknowledged that job creation is the biggest issue plaguing the US economic growth.
Earlier this month, Bernanke had given a robust backing of the Fed's $600 billion stimulus plan, which was thrashed out in an effort to boost the ailing economy and slash the unemployment rate.
According to latest estimates by the Fed, the unemployment could remain steadily at around 9 percent through 2011.
"There are obviously very severe economic and social consequences from this level of unemployment," said Bernanke, insisting that "getting new jobs, getting unemployment down is of an incredible importance."
The unemployment rate remained stuck at 9.6 percent in October for the third consecutive month.
The remarks come amid a standoff in the Senate over a long-term extension of federal unemployment benefits.
In October, the US Labor Department announced a 20,000 increase in initial claims for unemployment benefits.
According to latest figures, almost 15 million Americans currently collect unemployment benefits.
HA/MGH
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