Jan 3, 2011
U.S. private employers have recorded 11 consecutive months of job gains, yet the number of people who are so discouraged that they have given up searching for work stands at an all-time high.
Friday’s employment report is expected to show the pace of payroll growth accelerated last month after a disappointing showing in November. However, consumers’ assessment of the job market deteriorated in December, according to the Conference Board’s latest consumer confidence survey.
This disconnect is symptomatic of the state of the labor market. Yes, it is recovering, but at a pace that can hardly keep up with population growth, let alone quickly bring down the 9.8 percent unemployment rate.
Private employment increased by an average of 106,000 per month through November. At that rate, it would take more than 6 years just to replace the jobs lost during the latest recession.
There is reason to believe hiring will pick up in 2011.