The Reds slumped to a 2-1 defeat at the hands of Aston Villa in the semi-final of the FA Cup on Sunday, with Tim Sherwood's men turning the game around to reach the final after Philippe Coutinho had put Liverpool ahead.
That result has seen pressure on Rodgers increase, with Liverpool outsiders for a Champions League spot. The Merseysiders are seven points adrift of fourth-placed Manchester City, although they do have a game in hand.
Carragher told Sky Sports: "Is Rodgers the right !man? I think so. I don't think your whole future should be determined by one game. It was difficult with the players that came in and I still don't think many of them have bedded in yet.
"Brendan, the players and the staff will be looking to next season and thinking they will go one step further, winning a trophy, maybe, and getting back into the top four. That's his job.
"He has to identify where in the team they need to improve; the squad is there and they did a lot of that last summer. The signings have to be right and, if they are, it will make a massive difference. If they're not, they'll be back to where they are this season."
Asked about the need for Liverpool to tie down vice-captain Jordan Henderson to a new contract, Carragher replied: "I think he's vitally important.
"He's an England player and, although he's not a local player, the way he performs for Liverpool shows you the passion that he's got.
"He's a regular for England and, without Steven Gerrard, he's taken on the role of the captaincy this season. The manager has said it isn't set in stone that he will get it next season but I'd be very surprised if he wasn't. His record as captain is very good and he's a player who has grown into playing for Liverpool after a difficult start."
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