Job Outlook Meager At Best ...
-- June 17, 2003
The press tries to put a nice spin on it, but the fact is that three out of four employers expect to cut jobs or hold off on hiring this summer. That means the most Wall Street can hope for is a "jobless recovery" -- one that hammers personal income and sends consumer confidence skidding lower.
The problem is consumer spending is the only thing holding America's wobbly economy up -- as jobs disappear and consumers feel the pinch, they'll start sitting on their wallets. And that's terrible news for corporate sales and profits.
So, does this sound like fertile ground for recovery? Sorry, but investors will find that this summer, a recovery will be gone fishin' -- and the hope-fueled rally we're seeing in stocks won't stick around for Fall.
related article: Q3 Hiring Outlook Still Weak