US may grow slowly for another full year: Expert

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October's employment reports of US showed continued sluggish job growth. The government reported 80,000 total jobs were added in October.  The unemployment rate fell slightly to 9% from 9.1% in September.

In an interview with CNBC-TV18’s Menaka Doshi, Ken Goldstein, economist at The Conference Board, speaks about the numbers and gives his outlook going forward.

Jobs Report: 'Things are so bad that this looks good'

Below is the edited transcript of his interview. Also watch the accompany video.

Q: We got 80,000 new jobs versus the expected 95,000, but we got good revisions for both August and September. The jobless rate has come down to 9%. What do you make of the number?

A: Those good revisions for the past few months brought us back to an economy that is still at stall speed. The good news is that the US economy is not weakening, but is a long way from strengthening. So, two years out from the end of recession this economy is still going along at stall speed with no sign, no signal that things are going to change over the next few months. We have been here right through the holiday season. We will be here right through winter.

Q: We saw 2.5% for the Q3 on an annualised rate. We are now seeing these jobs numbers. It looks to me like the economic data is improving slowly, but surely is improving. Do you think this marks a definite change in the economics mood?

A: Absolutely not. Since 2009, this is an economy that has been crawling at a snail’s pace. There is no change here notwithstanding the surprise that we got in the Q3 GDP number. We are still at stall speed, exactly where we have been. And again we are going to stay here right through the holiday season, right through winter. Infact we could be here, a year from now.

Q: About a month and a half or two months ago, you were hopeful of a marked improvement in the economy towards the end of the year and ofcourse the first quarter of next year. You were also pointing out that we might see improved data on the housing front. Has your perspective changed?

A: My perspective was and remains that yes there is atleast a small chance not a big chance that we might see a little bit more positive growth, if housing begins to turnaround. That is not a strong possibility. But absent that, I don’t think there is any reason to think that this very slow economy, very slow in terms of growth, in terms of jobs, in terms of incomes, is going to change anytime soon.

Q: The FED commentary earlier this week did sound slightly more improved, but are you disappointed that the Fed did not take any action considering that you expect we well be here for prolonged period of time?

A: No because there is not much that the FED could do, even if they wanted to. Fiscal policy could change this, but fiscal policy clearly is not going to change anytime real soon. So, this is an economy growing very slowly with no help coming either from monetary or especially from fiscal side. That part of the reason why we have been here for so long, part of the reason why we are going to be here at least for a few more months and conceivably for another full year.

Q: What is your view on Greece?

A: What does or does not happen in Greece is a small concern. The much bigger concern is what happens or what doesn’t happen in terms of Italy. That is part of the reason why the IMF has announced that they are going to start to monitor developments in Italy.

Greece is already foregone conclusion. The much larger question now beginning to be raised is not where does Greece go, but where does the Euro go?’ Whether Greece stays in or Greece leaves, what is crystal clear is that the Euro cannot go back to the way that it was.

The Euro must fundamentally be changed. I think while it is beginning to dawn that that is the case. The leaders in Europe are less clear where the Euro goes than they are to what to do about Greek debt. It is Euro not the Greek debt is the real concern.

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