The U.S. lost a larger-than-expected 467,000 jobs in June, lifting the unemployment rate to a 26-year high of 9.5 percent, according to the Labor Department.
How bad is the news for stock markets?
Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his outlook on Thursday.
Cashin reiterated his Wednesday statement: "The employment situation really can't improve with capacity utilization at 65 percent."
"I can see [unemployment] easily getting to 11 percent — maybe later this year."
Cashin is highly skeptical about the utility of a second stimulus package. He said the "first quote-unquote simulus package was hardly that. Only about 20 percent was headed for simulus. Congress passed it without reading it."
"The 'shovel-ready' stuff? They're shoveling something else, apparently."
He agreed with Pimco's Bill Gross, who voiced bleak predictions in a CNBC interview Thursday morning:
"Bill Gross is right: We're headed for stagnation for a good deal of time to come," Cashin predicted.
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Disclosure information was not available for Cashin or his company.