Job recovery could be slow and weak

n the midst of a recession, huge job losses are expected to continue for at least several more months. But what really worries economists is that the job market could be slow to recover even when the economy begins to improve.

In the recession that began in December 2007, the economy has shed more than 1.1 million jobs. Economists expect the Labor Department’s monthly employment report to show another 325,000 job losses for November when it is released Friday.

November’s job losses would represent the largest monthly drop in non-farm employment in seven years, if the report meets estimates. A larger decline could represent the biggest monthly drop in more than 26 years.

The unemployment rate is expected to reach 6.8%, which would be the highest since February 1993.

All indications suggest there’s little stopping jobs from continuing to plummet. ADP’s monthly employment report showed private sector payrolls fell in November by 250,000 jobs from the previous month. And according to a report by outsourcing agency Challenger, Gray & Christmas, planned job cut announcements by U.S. employers soared to 181,671 last month, the second-highest total on record.

A slew of large-scale job-cut announcements came Thursday, with AT&T (T, Fortune 500), DuPont (DD, Fortune 500), Viacom (VIA) and Credit Suisse announcing they would cut a total of nearly 21,000 jobs. All cited the weak economic conditions for the cuts.

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Category: Employment News, Headline