Nearly 4 million people quit their jobs, just shy of a record set in April, and up from 3.9 million in June. That suggests many Americans are confident enough in their prospects to seek something new.
Even though hiring was relatively tepid in August, the unemployment rate dropped to 5.2%, from 5.4% in July.
Economists have forecast that employers added 750,000 jobs in August, according to the data provider FactSet. That would represent a substantial gain, but below the roughly 940,000 jobs that were added in both June and July.
Analysts say they expect supply-chain issues to cause widespread shortages, less selection and higher prices for a number of popular holiday gifts, including gaming consoles, TVs, toys and sneakers.
The Conference Board said that concerns about the resurgence in COVID cases as well as worries about rising gas and food prices contributed to the drop.
Senior administration officials have been worried about polling showing that voters—including many Democrats—blame President Biden’s economic policies for high inflation.
Hurricane Ida is sure to take a toll on the energy, chemical and shipping industries that have major hubs along the Gulf Coast, but the extent will depend on whether refinery shutdowns are prolonged, economists suggested Sunday.
Consumer prices over the past 12 months have risen 4.2%, the biggest 12-month gain since a 4.5% increase for the 12 months ending in January 1991.
In a speech being given virtually to an annual gathering of central bankers, Federal Reserve Chairman Jerome Powell stressed that the beginning of tapering does not signal any plan to start raising the Fed’s benchmark short-term rate.
The uncertainties raised by the delta variant make it likelier that the Fed will announce a tapering in November or later, economists said, rather than in September. That would allow Fed officials to consider two additional months of data on inflation and jobs to gauge the delta variant’s impact.
The four-week average of claims, which smooths out week-to-week volatility, fell to its lowest level since mid-March 2020, when the coronavirus was beginning to slam the United States.
The U.S. economy grew at a robust annual rate last quarter, slightly faster than previously estimated, the government said Thursday in a report that pointed to a sustained consumer-led rebound from the pandemic recession.
The dwindling number of first-time jobless claims has coincided with the widespread administering of vaccines, which has led businesses to reopen or expand their hours and drawn consumers back to shops, restaurants, airports and entertainment venues.
The Federal Reserve is edging toward an announcement that it will begin paring the pace of its Treasury and mortgage bond buying, which now amounts to $120 billion a month.
Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. economy has been permanently changed by the COVID pandemic and it is important that the central bank adapt to those changes.
Economists think Americans are also shifting their spending from goods to services, things like haircuts or vacations, which are not included in Tuesday’s report. And rising prices for everything from food to washing machines might have checked spending.
Overall, industrial production—which includes manufacturing, utilities and mining—posted a 0.9% increase, the best performance since a 2.8% surge in March.
Prices at the wholesale level over the past 12 months are up a record 7.8%, the largest increase in that span of time in a series going back to 2010.
Rising inflation has emerged as the Achilles’ heel of the economic recovery, erasing much of the benefit to workers from higher pay and heightening pressure on the Federal Reserve’s policymakers under Chair Jerome Powell, who face a mandate to maintain stable prices.
Wages have been rising rapidly as the economy reopens and businesses struggle to hire enough workers. Some of the biggest gains have gone to workers in some of the lowest-paying industries.
