Warren Buffett Predicts Job Growth When Housing Rebounds

July 8, 2011 - 11:53 AM

OMAHA, Neb. (AP) - Billionaire investor Warren Buffett says the nation's employment picture will improve significantly once residential housing construction rebounds.

Buffett spoke to Bloomberg Television Friday morning before the Labor Department released a weaker-than-expected monthly jobs report, but his comments were more about the long-term picture.

The head of the conglomerate Berkshire Hathaway Inc. says he thinks people will be surprised how quickly employment improves once the excess houses are bought and normal levels of construction resume. He says the nation is still working off the excess homes created during the housing bubble.

Buffett expects unemployment to fall to about 6 percent within a few years, and the 2.5 million jobs lost in the recession will be replaced. The June unemployment rate rose to 9.2 percent.