Testimony, Congressional Budget Office, Statement of Douglas W. Elmendorf, Director – Policies for Increasing Economic Growth and Employment in 2012 and 2013, before the Committee on the Budget, United States Senate, November 15, 2011
“CBO expects real GDP to grow in the vicinity of 1½ percent this calendar year (as measured by the change between the fourth quarter of 2010 and the fourth quarter of 2011) and around 2½ percent next year. With modest growth in output, CBO expects employment to expand very slowly during the rest of this year and next year, leaving the unemployment rate close to 9 percent through the end of 2012. Weakness in the demand for goods and services is the principal restraint on hiring, but structural impediments in the labor marketsuch as a mismatch between the requirements of existing job openings and the characteristics of job seekers (including their skills and geographic location)appear to be restraining hiring as well.”
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