Expect Mixed Signals As Labor Market Recovers, Conference Board Says

Searching for Work The contradiction showing U.S. employment and unemployment both going up in January is one of several complex aspects of the labor market’s road from recession to recovery, The Conference Board reports.

According to The Conference Board, the number of “discouraged workers”—defined as workers who want a job, but have stopped actively looking for one—continues to rise. “It will take strong signals from the labor market to bring these individuals back into the labor force, and their re-entry will increase the number of people the labor market needs to support,” The Conference Board says.

“The percentage of unemployed who have been out of work 27 weeks or more continues to rise (now over 40 percent). If significant structural change in the economy results from this recession, many of these long-term unemployed may find their skills aren’t needed in the recovery work force. This could result in a period where the unemployment rate remains relatively high until these individuals re-tool or find alternative employment matches for their skill sets.

The continued rise in temporary employment signals that businesses are not convinced the recovery is underway. Temporary help provides the flexibility employers seek in uncertain times, letting them be more responsive to changes in market demand,” The Conference Board says.