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Few Job Gains at Current Growth: Goolsbee

Thursday, 6 Jun 2013 | 5:52 PM ET
Few Job Gains at Current Growth: Goolsbee
Thursday, 6 Jun 2013 | 5:06 PM ET
Worker productivity gains at 2 percent a year, or about the same as economic growth, doesn't foreshadow a big jump in employment, Austan Goolsbee of the University Of Chicago Booth School of Business, says.

Worker productivity gains around 2 percent a year, or equal to economic growth, doesn't foreshadow a big jump in employment, Austan Goolsbee of the University Of Chicago Booth School of Business said Thursday.

"You basically don't need to hire anybody to grow that fast," he said.

On CNBC's "Fast Money," the former chairman of the Council of Economic Advisers said that employment gains would begin to materialize at an economic growth rate around 3 percent.

(Read More: Jobs Report Could Spur Correction: Paul Richards)

What Now? 10-Year Heads Lower, VIX Up
The market resembles a Rubik's Cube as correlations shift, Josh Brown of Fusion Analytics says.

Ahead of Friday's U.S. employment report, Goolsbee added that he didn't expect overly positive news.

"I've been saying for some months that I don't expect a lot of good to be coming out of the job market because the growth rate hasn't been that high, and then you take the sequester and the fiscal drag is pulling it down a little more," he said.

(Read More: Market Now 'A Rubik's Cube': Josh Brown)

Goolsbee said that he expected a jobs number around consensus or below.

Economists expect an increase of 169,000 in non-farm payrolls, with an unchanged jobless rate of 7.5 percent.

(Read More: Will Friday's Jobs Report Save Stocks? Pros Weigh In)

"I think it's going to be a tough summer," he said.

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