Wolves slipped to bottom spot after being beaten 2-1 at home by Wigan on Boxing Day. McCarthy retains the backing of club owner Steve Morgan and chief executive Jez Moxey in a season where the likes of Chris Hughton and Sam Allardyce have been axed.
And the former Republic of Ireland manager has faith in his squad to climb out of danger despite a lengthy list of injuries.
McCarthy said: "No-one wants to be bottom but the players still have that resolve to get out of the current situation.
"They won't give up. There won't be anyone throwing the towel in or fearing that they can't get out of it. If you asked them they would all give you the same answer, that they are positive.
"But we also know that from how they behave and are around the place and how they train. They are very positive and come in with a good spirit - and I still believe we can get out of trouble."
Source: PA
Source: PA