An Improving Economy...Don't Hold Your Breath

David Matthau Reporting

The economy does seem to be improving, but if you're wondering when the recession will finally come to an end and the economy will really pick up steam…don't hold your breath.

Rutgers economist James Hughes says this recession is different from previous downturns, because "2008 and 2009 were the two worst job loss years since we first started compiling statistics in 1939…and also this time around, approximately half of the jobs were really white collar jobs that were lost - so we are really in uncharted territory."

In addition, he says "consumers and households have taken a major financial hit…with lost income, depleted finances and loss of home equity…and that's going to take a long time rectify."

Hughes points out many older people - who would normally be relaxing at this point in their lives- are unable to do so now, "because of depleted savings and reduced equity in their homes, loss of value in their financial holdings- so they're going to keep working rather than retire, and that's going to squeeze the job market for younger people."

He says the bottom line is that "it's going to be a new economy…we don't even know what it's going to be…and it's going to take a number of years - maybe until mid-decade to make up the job losses."

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