Clarkson Black Associates CEO Expects Friday's Jobs Report To Be Gloomy
September probably offered little relief in the nation's vexing unemployment problem, setting the stage for more Fed intervention that experts give only dubious prospects for success.
- (1888PressRelease) October 06, 2010 - Economists expect Friday's jobs numbers to be a wash-private payrolls likely increased 75,000 but the government cut another 78,000 Census workers from its payrolls.
When factoring in the other variables, that probably means zero jobs growth and an unemployment rate inching up to 9.7 percent from 9.6 percent, mainly because more unemployed people rejoined the search for work.
The reasons behind the poor jobs outlook are myriad, experts say: The tax climate remains uncertain as November's election prospects hang in the balance; the government is continuing to peel off Census workers; and while double-dip recession fears are coming off the table, belief that the recovery will be slow and painful is not.
"We're settling into what I would call this slow-growth mode that will be with us until we have resolved some structural problems in our economy. How long that is going to take nobody knows-it could be several quarters or several years," says Richard Wainwright, CEO at Clarkson Black Associates in Seattle. He went on to say, "Everybody's just incredibly cautious because we are beginning to realize this was one of the worst recessions and not just a cyclical thing."
That's hardly what was expected when the government began spending its $810 billion in stimulus funds that was supposed to drive the unemployment rate down to about 8 percent by now.
What has happened instead has been a slog through very slow growth in which GDP could rise as little as 1.5 percent in the third quarter, according to some estimates.
"With a lot of the spending, it doesn't seem to be sticking here. It's going somewhere else," continued the Clarkson Black Associates CEO before ending by saying "In the near future, nothing seems to be ready to radically reverse this."
Clarkson Black Associates is a Seattle based middle market Boutique Investment Banking and Advisory Firm offering specialist advice and services to both Private and Public companies.
Clarkson Black Associates team of Senior Investment Bankers have extensive experience and track record of servicing the need of Middle Market companies. Its philosophy is to work closely with Promoters of companies to create customized and innovative solutions.