U.S. job market could worsen as stimulus money is spent!
NEW YORK - March 3, 2010 - Snow in February is not the last of the stormy weather for the U.S. labor market.
The weak rebound in the services sector will be a drag on job creation in the near term, and stubbornly high budget deficits at many states will bring more job cuts as federal stimulus spending declines significantly next year.
Congress’ latest bill to extend unemployment benefits and contingency health insurance coverage for several hundred thousand people also underscores the need to stabilize the situation.
“The safety net looks very shaky,” says economist Richard Hastings of Global Hunter Securities, who is among those who sees another big wave of government and private sector layoffs once the federal aid dries up. "The situation is feeding on itself.”
The weak rebound in the services sector will be a drag on job creation in the near term, and stubbornly high budget deficits at many states will bring more job cuts as federal stimulus spending declines significantly next year.
Congress’ latest bill to extend unemployment benefits and contingency health insurance coverage for several hundred thousand people also underscores the need to stabilize the situation.
“The safety net looks very shaky,” says economist Richard Hastings of Global Hunter Securities, who is among those who sees another big wave of government and private sector layoffs once the federal aid dries up. "The situation is feeding on itself.”
