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Greenspan sees renewed US demand for jobs

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Greenspan sees renewed US demand for jobs

Alan Greenspan, former boss of the Federal Reserve, expects a quick rebound in US jobs, now at 10% unemployment levels. He says companies are struggling to expand production after job cuts and reckons they were so afraid of being put out of business by the recession that they cut their payrolls beyond levels required to meet renewed output. But while Greenspan sees the sunny side of growth after arguably the worst downturn since the Great Depression, the US needs to add 100,000 jobs a month to keep up with population growth. Greenspan’s hopes are somewhat predicated on massaging unemployment statistics. Many people who lost jobs during the recession gave up looking for work. This means they were not counted in unemployment statistics. Now Greenspan expects them to again seek jobs, which will make the employment figures look a little rosier. Read more: Business Week

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