NEW YORK (Reuters) - With "no end in sight" for U.S. job losses amid a recession that could stretch into 2010, American workers will soon have to contend with another blow to their confidence: stagnant, or even falling wages.
Job seekers -- already coping with the highest unemployment rate in a quarter century, their savings mugged by a plunging stock market -- can also expect lower pay once they land a new job, labor market experts say, because the current downturn shows no signs of turning around anytime soon.
"There's no end in sight," said Tig Gilliam, chief executive of Adecco Group North America, the third-largest U.S. employer behind Wal-Mart Stores and the postal service.
"March is going to be the same, and I don't see anything that will make April better."
Lower wages, in turn, could further erode the outlook for the U.S. economy by hurting consumers' spending power.
The government's February employment report showed 651,000 jobs eliminated outside the farm sector, while losses in the previous two months were revised upward. The unemployment rate jumped to 8.1 percent, highest since 1983.
Job losses in professional services categories are accelerating, and temporary payrolls -- typically a leading indicator -- show no signs of improving, Gilliam said.
The temp sector, where losses preceded the decline in the wider labor market by a year, must stabilize before any hint of a wider jobs recovery.
Temporary workers as a percentage of the total workforce are down to 1.42 percent, a level not seen since May 1994. The bottoming of this metric typically correlates with the end of recession, said BMO Capital Markets analyst Jeffrey Silber in a research note.
http://www.reuters.com/article/newsOne/idUSTRE52567K20090306