CUNA: People realizing recovery 'not typical'
MADISON, Wis. (2/9/10)--The loss of 20,000 jobs in January--more than expected-- indicates a slow recovery, and consumers are starting to realize that the economic recovery isn't a typical one, Credit Union National Association senior economist Mike Schenk told Investor's Business Daily's Investor.com Friday.
"People are sort of coming to the realization that this won't be a typical recovery," Schenk said. "It's going to be a long, slow slog."
The economy grew at a 5.7% annual rate in fourth quarter 2009, the biggest gain in six years, but the bulk of that was because companies are paring their inventories more slowly.
Economists expect much slower growth in the next few quarters and sluggish hiring. The average duration of unemployment is 30.2 weeks, compared with December's average of 29.1 weeks.
Some hopeful signs: Temporary jobs rose by 52,000, and existing staff worked longer hours. Companies often hire temps and work existing staff at longer hours before they hire permanent staff.
"It will be increasingly clear that the jobs market is improving, and we're slowly working our way out of this mess," Schenk said.
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