{"id":70723,"date":"2009-12-08T08:02:13","date_gmt":"2009-12-08T13:02:13","guid":{"rendered":"http:\/\/www.businessinsider.com\/henry-blodget-heres-why-there-wont-be-a-v-shaped-recovery-in-jobs-2009-12"},"modified":"2009-12-08T08:02:13","modified_gmt":"2009-12-08T13:02:13","slug":"heres-why-there-wont-be-a-v-shaped-recovery-in-jobs","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/70723","title":{"rendered":"Here’s Why There Won’t Be A V-Shaped Recovery In Jobs"},"content":{"rendered":"

\"U.S.<\/p>\n

After Friday’s surprising jobs report, there has been a glimmer of hope that the U.S. won’t be stuck with 10% unemployment for years.<\/p>\n

Perhaps, like the stock market, the job market will come roaring right back, in a terrific v-shaped recovery.<\/p>\n

Unlikely, says Asha Bangalore of Northern Trust.<\/a><\/p>\n

Since the peak, Asha says, the recession has wiped out 7.2 million full-time jobs.  2 million of those jobs were in the auto and real-estate industries, both of which have been semi-permanently downsized.<\/p>\n

At the same time, the length of the work-week has dropped to a record low, and the number of folks working part-time because they can’t find full-time work has soared.  As new demand kicks in, employers will likely start by hiring temporary workers and giving part-time employees more work.  This will absorb a lot of the initial slack. <\/p>\n

Only when the work-week has returned to normal will hiring of new full-time employees return in earnest.  This will likely keep a lid on hiring at least through 2010.<\/p>\n

See the story in charts ><\/a><\/h2>\n

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