The next round of economic releases is about to commence, ushering in the next phase of the post-apocalyptic financial crisis. Although we’re likely to see a fresh batch of encouraging numbers, there’s plenty of reason to remain humble on expecting salvation is imminent for one simple reason: the labor market continues to bleed.
“While job losses will likely end early next year, robust job gains may still be several quarters away,” according to Christina Romer, the chair of President Obama’s Council of Economic Advisers, in testimony to Congress last week.
That’s a fairly stark assessment considering that it comes via the usual political spin that passes for debate in Washington. A cynic might argue that if the White House is preparing the nation for many more months of job destruction, the truth may be even harsher. Meantime, the next clue comes on November 6, with the monthly update on employment from the government.