From Wall Street to Washington, everyone seems to expect another big gain in the number of new U.S. jobs created in August. But what if hiring turns out to...
From Wall Street to Washington, everyone seems to expect another big gain in the number of new U.S. jobs created in August. But what if hiring turns out to be a dud?Oh, sure, it could delay for a month or two the Federal Reserve’s long-anticipated process of unwinding its easy money policies introduced last year to aid the economy during the worst of the pandemic. But it doesn’t alter the bigger picture. The Fed and most investors are convinced the U.S. is on a path to full recovery.The U.S.
For one thing, virtually all schools plan to reopen for children in the fall. That will allow parents to work outside the home during the day instead of taking care their kids. The Biden administration has left the door open for states to use other federal stimulus money to keep paying these benefits, but most states are not expected to so do. Half of the states actually cut off extra benefits early.The report still matters, of course. The delta variant of the coronavirus surged in many states in August and may have caused service-oriented businesses such as restaurants and entertainment venues to hire fewer people.
It might not sound like a big deal, but it means millions of people are missing from the labor force. As many as 9 million more people would be working right now, economists estimate, if the pandemic had never happened at all.
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