CBO: Unemployment Will Be Above 8 Percent Through 2012

According to the latest budget outlook released today by the Congressional Budget Office (CBO), the national unemployment rate will still be 8.5 percent at the end of next year. “Weakness in the demand for goods and services is the principal restraint on hiring, but structural impediments in the labor market — such 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 hindering hiring as well,” CBO said.