The White House is pessimistic about reducing the level of unemployment in the United States.
Jobs data for August is due to be issued on Friday. The official unemployment rate was 9.1% in July.
The Office of Management and Budget said on Thursday the jobless rate could still be as high as 9% late next year, or at best 8.2%.
With the presidential election due in November 2012, the BBC reports that tackling unemployment is expected to be one of the key issues.
However, figures in a mid-year fiscal budget review by the OMB show that the Obama administration expects the economy to improve towards the end of the year.
It says the US economy will avoid falling back into recession this year and grow by 1.7% - 2.2% instead.
So far, the BBC reports, official data shows growth of only 0.4% in the first quarter and 1% in the second.
