Job market unlikely to recover until 2014

[Amerigo Vespucci]

Source: MSNBC

New unemployment data show why it will take years for the labor market to recover from one of its fastest and deepest declines since World War II, even if an economic recovery is around the corner.

The Department of Labor report released Friday showed job cuts in August were lower than they've been in recent months. But a deeper look at the data shows why it will take millions of new jobs to dig American workers out of this recession's deep pit.

Unemployment for teenagers stands at nearly 26 percent. More than 758,000 workers are so discouraged they quit looking for jobs altogether, by far the biggest such number since the Department of Labor started tracking it in 1994. Damage continues to mount in the manufacturing, financial and construction sectors.

This means it will take several quarters of economic growth to put the unemployed back to work. About 125,000 jobs need to be created each month just to keep up with the natural increase in the number of job seekers from immigration and population growth. Even if that number is surpassed in coming months, it will take a very long time to make up all the lost ground.

Read more: http://www.msnbc.msn.com/id/32694985/ns/business-stocks_and_economy/