Analysts: Deficit to Exceed $1.3 Trillion in 2010

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New reports on the economy indicate the recovery is clearly slowing. The latest jobless claims have hit a 9 month high. Congressional analysts say this year's budget deficit will top $1.3 trillion.

Last week's jobless claims spiked to 500,000. Economists said it's a sign that employers are still hesitant to hire until the rebound is well underway.

President Barack Obama even admits the recovery will likely take years.

"We're not going to get all 8 million jobs that were lost back overnight," Obama said. "It's going to take some time.

The Congressional Budget Office predicts the deficit will exceed $1.3 trillion this year. If true, it would be the second largest deficit ever recorded.

Analysts said more tough times are ahead as high unemployment and slow manufacturing growth puts the brakes on the economy.

"Unfortunately this is the case where no news is not good news," said Douglas Elmendorf of the Congressional Budget Office. "This country faces serious budget problems and serious economic problems."

Meanwhile, General Motors has said it's preparing to sell its stock to the public once again. That announcement came just over a year after GM had to be rescued by the federal government.

"It's a real indication that the company has successfully transitioned out of the kind of danger phase into a phase where they will be able to start using their newly reorganized status to start growing market share again," said Dan Arnall of the ABC News Business Unit.

The financial stress for many workers can be seen in one more troubling report.

In the second quarter, a record number of people made hardship withdrawals from their retirement accounts. The report shows that number reached a 10-year high.

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Heather Sells

Heather Sells

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Heather Sells enjoys reporting on a variety of issues for CBN News. Some of her recent stories have focused on religious liberties, technology, AIDS, overseas missions, domestic trafficking, and politics.  Follow Heather on Twitter @SellsHeather and "like" her at Facebook.com/HeatherSellsCBNNews.