UNEMPLOYMENT IN U.S.

Ashburton Guardian, Volume 70, Issue 125, 11 March 1950, Page 5

UNEMPLOYMENT IN U.S.

WARNING ISSUED GROWTH OF ECONOMY NEEDED (N.Z.P.A.—Copy right) (11.10 a.m.) NEW YORK, March 10. The number of unemployed in the United States could reach 10,000,000 by 1954 unless the nation’s economy expanded, Leon Keyserling, acting-chairman of President Truman’-s Council of Economic Advisers, said to-day. Mr Keyserling added- that a growth of from three to four per cent, a year in the national economy would be required to absorb the labour force increasing by 750,000 workers a year, and the products of an increasingly efficient industry. Pointing to 1948 as the most prosperous year the United States had ever had, he said: “If you have the same economic level in 1954 as in 1948, you could have 10,000,000 unemployed.” Mr Keyserling said he believed the nation would experience a very high and rewarding level of economic activity this year. He declared: “I do not expect recession. Ido not expect a depression.” Mr Keyserling said that unemployment, which he set at 4,700,000 in February, was a real problem. He estimated* that there was a 50-50 chance that it would be higher by the end of the; year. Mr Keyserling said that, broadly speaking, the present price level should be maintained. He added, however, that hp believed that present prices for steel, 'building materials and motor-cars were too high.