As we head into the final months of 2010, we see very little improvement in the pace of job creation since the beginning of the year.
Goods producing employers continued to trim jobs as decision-makers remain skeptical about the recovery and hesitant to expand their payrolls, instead focusing on ways to increase productivity and contain costs.
If there is a relative bright spot, it’s the service sector, where job creation is occurring although at a meager pace.
Job losses in the construction industry have spanned nearly four years in the aftermath of the housing bubble, with very little indication that activity in the sector is poised to move meaningfully higher.
The re-sizing of the workforce in the construction sector is not cyclical in nature and a large number of those jobs are simply not coming back in the foreseeable future even if the economy gathers steam from here.
Overall, current job growth remains well below levels needed to chip away at the unemployment rate.
Among the factors weighing on consumer confidence, the lack of robust job creation and, for many, the fear of being at risk of losing one’s job are contributing to the slow recovery in housing and restrained spending in general.