Feb Beige Book Shows Recession Easing

As reported today in the WSJ, the Fed's latest beige book report shows that the recession is easing, basically saying things are "stablizing", but "real estate markets remain weak and credit conditions are still tight...".

Unfortunately for staffing providers, unemployment continues to rise, and is expected to continue to rise over the next few months. So what does that mean for the staffing industry and those poor people in the worst job market in recent history?

It boils down to continued layoffs and fewer opportunities for those looking to re-engage in the work force. Durable goods fell in June, with much of that attributed to fewer cars, planes, and boats being manufactured. Lower levels of durable goods is linked to lower levels of discretionary spending by the consumer and increased savings (the highest in the last 15-20 years). People are still holding on to their money.

Until the government can actually get some of the stimulus money flowing into the hands of the small businesses that make up 90% of all job creation in the U.S., you can forget a substantial recovery.

Staffing providers will continue to take it on the chin until the government realizes their failure to make the $$ trickle all the way down the chute.