02.16.2010 In the News, Policy Points

NC’s Jobless Recovery

In the February issue of Business North Carolina, editor Ed Martin explores what a “jobless recovery” would mean for the state’s labor force. The story features the perspective of John Quinterno of South by North Strategies, Ltd.

Said Quinterno of the human consequences of a jobless recovery:

“There are a variety of consequences for employees. It injects a lot more uncertainty into their lives — and financial instability. Income swings more wildly. If the spouse has to go to work, there’s the compound issue of child care. Even in a relatively skilled field now, you don’t have much employment or financial security, so that can put a strain on the economy and growth in demand.”

Fear becomes a factor. “If people are afraid, they’re not going to eat out once a week or go to the movies or write that check to the United Way,” Quinterno says. “It ripples out to the larger economy. If you’re talking about jobless recovery, firms are going to want to add labor when they have the opportunity to sell more goods and services, but they can’t if there’s not much demand for them.”

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