Conditions in the labor market remained
poor, and business contacts generally indicated that
firms would be quite cautious in hiring when demand
for their products picks up. Moreover, declines in employment
and weakness in growth of labor compensation
meant that income growth was sluggish
Labor market conditions remained of particular concern
to meeting participants. Though recent data indicated
that the pace at which employment was declining
had slowed appreciably, job losses remained sizable....
The unusually large fraction of those
who were working part time for economic reasons and
the unusually low level of the average workweek, combined
with indications from business contacts that
firms would resist hiring as sales and production turn
up, also pointed to a period of modest job gains and
thus a slow decline in the unemployment rate. Wages
and benefits continued to decelerate.
(page 8). I do not see any basis for disagreeing with any of those statements, though it is possible that a return to job growth could occur by the end of the 4th quarter.