April 1st, 2010
09:29 AM ET

Geithner sees 'unacceptably high' jobless rate

Treasury Secretary Tim Geithner said he expects the unemployment rate to remain "unacceptably high" for a long time, even as the economy recovers and job growth slowly resumes.

"I think the key thing that's going to happen is the economy's going to start creating jobs again," Geithner said in an interview aired Thursday on NBC's "Today." "But the unemployment rate is still terribly high, and it is going to stay unacceptably high for a long period of time."

The comments came ahead of the government's monthly jobs report, which is due Friday. That report is expected to show that U.S. employers added 190,000 jobs in March, but the unemployment rate remaining at a persistently high 9.7%.

"It is going to take a long time to bring it down because of the damage of the recession," Geithner said of the jobless rate.

The remarks were consistent with previous administration forecasts. In a Feb. 1 report on assumptions underlying the fiscal 2011 budget, Council of Economic Advisers chairwoman Christina Romer said the unemployment rate will end the year at around 9.8%, and will reach 8.9% by the fourth quarter of next year.

Geithner, who was interviewed at a meeting of business leaders in Pittsburgh, said the financial crisis and subsequent recession of the last few years had caused a "huge amount of damage" to businesses and households.

"We're going to be living with that damage for some time," he said.

However, he stressed that President Obama has taken steps to revive economic activity and foster job growth, including a $17.6 billion bill passed earlier this month.

"It is going to take time to bring back what we lost," Geithner said. "But again, that's why he's working so hard to make sure that Congress is providing additional support for job creation, more support for small business, more support for infrastructure, more support for cities and states across the country."

–CNN senior political correspondent Candy Crowley contributed to this report.

soundoff (14 Responses)
  1. WausauFamily

    ya think?

    April 1, 2010 at 9:54 am | Report abuse |
  2. Jason

    So, what will happen to the unemployed? Will they continue to receive unemployment benefits - we already see republican congressional opposition mounting, During debate of the last extension, delayed for political reasons, several Senators stated that unemployment benefits were a disincentive. The job search continues, the instability continues, and the worry and stress and anxiety grow...

    April 1, 2010 at 10:13 am | Report abuse |
  3. Mack

    I hate to break it to him but the loss of jobs started way before the recession. Job out sourcing is killing the USA

    April 1, 2010 at 10:22 am | Report abuse |
  4. Jodaddy

    Really...so YOU find that 'unacceptable'..? What about those of us that are LIVING it every minute of every day? You have your buddies on Wall Street, and at the banks all 'fixed' with my money...oh yea and don't forget about your buddies the union thugs....and NOW you find it unacceptable that the private sector (which produces ALL products, services from which ALL tax money comes) is still laying off people...'unacceptable' alright!!! Health care was just a smoke screen.....see you at the polls in Nov.

    April 1, 2010 at 10:38 am | Report abuse |
  5. kanjaji

    Du uh! Must be Harvard trained. Bet it took an army of consultants and government economists to pull together that incredibly astute set of observations. Wow, 800 billion to Wall Street and the banks and 17 billion for jobs creation. Thanks. I'm glad this administration is looking out for us. Oh, and just wondering, is the government still passing out raises to its employees while the rest of the country is struggling?

    April 1, 2010 at 10:43 am | Report abuse |
  6. ssee

    I'm calling for Tim Geithner resignation; This exGoldman Sack is the pointman for wallstreet

    April 1, 2010 at 10:51 am | Report abuse |
  7. Andy Nagle

    9.8%, with 100,000 temporary census workers added. So what would the rate be without them?

    April 1, 2010 at 3:13 pm | Report abuse |
  8. NA citizen

    Where is the government spending. Tax the high income and start investing in infrastructure, stop dumping from China and bring back production to US. The last 3 repulican presidents of 4 just exported the job. With the crimping manufacturing job the well paid tax base just vanished so did the tax revenue of the country while the corporate made huge profits. Also no capitalist will invest in a recisiion. The only way to save US is my increasing taxes and government spending to bring the money into the market and ciculation. IN the past 30 or so years there has been a flight of capital from US, more malls and shopping centers have opened that new plants and factories. The country will never be what it was unless and untill manufacturing jobs are brought back to US. The country is hopelessly dependent on just one sector Automoble which is also see some very bad days. The econmy need diversification and creat more manufacturing job. Wealth increases through manufacturing industry as service industry with it's low paying jobs just dritributes wealth it does not create wealth. Bring back manufacturing jobs and increase govt spending till then is the only mantra.

    April 1, 2010 at 4:03 pm | Report abuse |
  9. John Verco

    The truth is slowly starting to come out. With globalization in full swing, the jobless rate here in the United States may never recover. The fact is, it's just cheaper to outsource manufacturing to poorer countries...And you support this, because you buy the cheapest products.

    I don't think globalization can be stopped. The only way our country will be able to create more manufacturing jobs is to invent entirely new products and technologies. Where are our thinkers and geniuses?

    You have a whole generation of children who want to grow up to become Lady Gaga, Kobe Bryant or Jay Z. No one wants to make anything though.

    April 6, 2010 at 10:10 am | Report abuse |
    • Walt

      John, Here's the thing. Most people in the US already know that even if a good sized group of people in the U.S. create some new technologies, the Chinese will steal them and reproduce them for pennies. There is no enforcement of U.S. patents in China. NONE. Then the rest of the U.S. will still not have any jobs. Today some of the countries that we trade the most with also utilize slavery or have people in near slavery conditions. Why do we not believe that there is a possibility of changing how we trade with other countries? Why is the word protectionist such a dirty word? No instead we have large corporations waiting for us to be hungry enough to work for pennies. Welcome to the 1850s! Hope you enjoy it.

      August 30, 2010 at 12:34 pm | Report abuse |
  10. Chris

    I am one of those people that wanted to become a highly advanced engineer, but it turns out the oil companies and any one working for them apply very strict intelligence regulations. Also, there are thousands of people like myself that can solve EVERY problem known to mankind, but in the end it doesn't matter if I know how to make wind turbines 90% cheaper and 200% more efficient, because that doesn't make the British or any of the other people involved in corporate scandal any more money. I also figured out a way to become self funded, so I do not need grants or loans, all I need is my intelligence to fix every known problem to man. As far as the people that only want to be rappers and actors, that is their chocie, the point is, there are so many highly intelligent people in America right now, that their minds are worth 1 million minds in 1, and the last thing they need on their side is a burnt out rapper.

    April 9, 2010 at 3:34 am | Report abuse |
  11. escorts exclusive

    Pretty cool site you've got here. Thanx for it. I like such topics and everything that is connected to this matter. I would like to read a bit more on that blog soon.

    Bella Hakkinen

    August 18, 2010 at 8:13 am | Report abuse |
  12. escort agence

    It is rather interesting for me to read that blog. Thanx for it. I like such topics and anything connected to them. I would like to read a bit more on that blog soon.

    Anete Benedict

    August 31, 2010 at 1:15 pm | Report abuse |
  13. Anete Simpson

    Impressive article. Waiting for you to continue the topic.

    Anete Simpson
    escorts in warsaw

    December 2, 2010 at 3:18 pm | Report abuse |