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Monday, January 24, 2022

After flop in August, crucial September jobs report expected to show rebound in hiring

8th October (WNN) — The Labor Department will release its September jobs report on Friday, which is expected to be one of the more important employment assessments of the COVID-19 era, and analysts estimate it will show nearly half a million new jobs for the month.

Most economists expect the report to see a substantial increase in August, when a disappointing 235,000 were added to American payrolls — nearly 500,000 less than all estimated.

President Joe Biden said at the time that the report showed the continuing impact of the delta coronavirus variant in the United States.

Economists surveyed by FactSet and The Wall Street Journal estimate the US economy added 500,000 jobs in the month of September – and on Wednesday the monthly report by ADP and Moody’s Analytics, which is always a precursor to Labor Department reports and sometimes more -Ever provides an indication of what the official report will show, 568,000 private sector jobs were added last month.

The Republican minority on the House Ways and Means Committee said Thursday that Biden has nearly 1.3 million jobs short of his pledge to produce 4.4 million by September through his $1.9 trillion COVID-19 stimulus package.

“So far only 3.1 million jobs have been created, which means more than 1.3 million jobs are needed to deliver on what they promised in September’s jobs report,” he said in a statement.

Biden, who will talk about the jobs report after its release on Friday, stressed after an August report that the job market was hit by a rise in COVID-19 cases during the summer – he and health officials say That this is largely due to those who refuse vaccination.

Biden is scheduled to address the report Friday at 11:30 a.m. EDT.

The surge of COVID-19 in August is believed to have changed labor participation rates – people who do not have jobs and are not actively looking for work – to people in food service, retail and hospital jobs. greater exposure to the virus by taking them out of where they are at risk.

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“The participation rate has basically stayed at a relatively low level for the past year or so,” Sal Guatiri, senior economist at BMO Capital Markets, told Quartz. “Some people are reluctant to return to the workforce.”

On Thursday, Biden defended his decision last month to require all US businesses with 100 or more employees to be fully vaccinated, or tested once a week, to all workers. The White House said the mandate would result in “millions of new vaccinations”.

According to the Centers for Disease Control and Prevention, approximately 65% ​​of the US population has received at least one dose of the vaccine. About 56%, or 186.6 million Americans, are fully vaccinated. About 4% have received a third dose or booster.

Child care, a key pillar of Biden’s $3.5 trillion social spending plan, which has been stalled in Congress, has also weighed on job numbers, as it limits participation rates among American women. The widespread reopening of schools across the country that took place last month could increase their rates, Friday’s report said.

The new jobs report comes as the country’s expansion of unemployment benefits, which offered a weekly supplement between April 2020 and July 2021, ended on September 6, reduced benefits for more than 8 million people.

Meanwhile, wages are rising, with hourly wages rising 4.3% over the past 12 months ending in August.

Friday’s report is also expected to be a key factor in whether the central bank will ease its pandemic bond buying programme.

As an emergency response to the pandemic, the Federal Reserve buys $120 billion worth of bonds each month and Fed Chairman Jerome Powell has said the central bank will give “advanced notice” before announcing plans to halt asset purchases. .

During a previous meeting of the Federal Open Market Committee, Powell said the Fed could begin to reduce purchases if payroll numbers improve.


World Nation News Deskhttps://www.worldnationnews.com
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