Home>Topics>>"Fiscal cliff" could lift jobless rate over 10 percent: Fitch
"Fiscal cliff" could lift jobless rate over 10 percent: Fitch
Reuters: Business News
Mon, 19 Nov 2012
NEW YORK (Reuters) - The "fiscal cliff" could trigger a recession and push the unemployment rate above 10 percent, ratings agency Fitch said on Monday.
Morningstar employment sector analyst Vishnu Lekraj forecasts unemployment ticking higher still but sees an inflection point in the pace of job losses.
Investors can get a better read on the data by tuning out short-term quirks, understanding when indicators are most reliable, and properly sizing the economic magnitude of each report.
Some quirks boosted the September employment report, but several factors--including higher wages and a construction upturn--suggest tailwinds for further improvement ahead.