'The recovery of downward revisions'

Bank of America Merrill Lynch's economic team says upcoming government statistics on the labor market will make for some grisly reading because of revisions to key baseline numbers. Mind you, this is not economist-geek stuff. It will contribute to some important policy debates.

The firm expects unemployment to keep rising, in fact, pushing the monthly rate above 10 percent, giving rise to another batch of quantitative easing from the Fed.

“We remain of the view that there is unlikely to be a material improvement in the employment data between now and the second half of next year,” economists Michelle Meyer and Neil Dutta tell clients. “The economy will manage to cobble together employment gains but not enough to keep the unemployment rate from rising.”