President Obama will face a nearly 9 percent unemployment rate well into his re-election bid next year, according to a new report that amounts to a warning flag for an incumbent who had banked on a vastly improved jobs situation by the time voters flock to the polls.

Projections released Wednesday by the nonpartisan Congressional Budget Office say the unemployment rate will hover around 8.5 percent during the final three months of 2012, meaning Obama will still be at the helm of a stagnant economy by the November 2012 election.