U.S. employers added just 194,000 jobs in September, a second straight tepid gain and evidence that the pandemic still has a grip on the economy with many companies struggling to fill millions of open jobs.
After hitting a pandemic low of 312,000 in early September, claims had risen three straight weeks, suggesting that the highly contagious delta variant was at least temporarily disrupting a recovery in jobs.
Of the 18 service sectors surveyed, 17 reported growth in September, led by retail trade. The only one that contracted was the agriculture, forestry, hunting and fishing sector.
International Monetary Fund Managing Director Kristalina Georgieva on Tuesday cited rising risks from inflation, debt and a divergence in growth prospects between nations with access to coronavirus vaccines and those in need of shots.
Investors are increasingly worried about inflation as oil prices rise and companies continue facing supply problems that increase their costs and force them to raise prices.
Americans bought more furniture, clothes, and groceries during the month, while the delta variant caused them to pull back on traveling and eating out.
Federal Reserve Chair Jerome Powell on Wednesday stood behind the ultra-low interest rate policies he has pursued since the pandemic decimated the economy more than 18 months ago. But he acknowledged inflation has stayed higher for longer than he expected.
Federal Reserve Chairman Jerome Powell said that the unprecedented process of reopening the economy after the COVID shutdowns has resulted in a number of problems that could continue in coming months.
The coronavirus remains the dominant variable around how the U.S. economy will do for the rest of the year and into 2022, according to National Association of Business Economists.
The numbers are staggering: The child-care services industry is still down 126,700 workers—more than a 10 percent decline from pre-pandemic levels, Labor Department data shows.
After accounting for all the federal relief payments, the so-called supplemental poverty measure declined to 9.1% in 2020—the lowest on record and a significant decline from 11.8% in 2019.
While the upward march of prices appears to have eased last month, economists caution that the same underlying causes remain. Supply chains are still snarled, especially for critical components like computer chips, and consumer demand is easily outpacing supply.
Amazon’s starting pay is still $15 per hour, but with labor markets growing so tight in regions of the country, the company said new hires could make as much as $22.50 an hour. It’s also paying sign-on bonuses of $3,000 in some places.
Leaders of the Gates and Rockefeller Foundations are warning that the pandemic could set back global progress on education, public health and gender equality for years.
Inflation at the wholesale level saw its biggest annual gain since the Labor Department started calculating the 12-month number in 2010.
The ongoing drop in applications for unemployment aid—six declines in the past seven weeks—indicates that most companies are holding onto their workers despite the slowdown.
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.
